Authors :
Shah Md. Sumon; Raju Ahmed
Volume/Issue :
Volume 7 - 2022, Issue 8 - August
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3BgrIjL
DOI :
https://doi.org/10.5281/zenodo.7082042
Abstract :
The entire banking industry either
conventional or Islamic banks is crucial requirement to
maintain liquidity position by effectively and cautiously.
This article tries to explain the necessity of proper
Islamic securities for liquidity management in Islamic
banking industry of Bangladesh. Also this paper attempt
to explore the newly formed sukuk bond structure and
its further developing aspect in Bangladesh. In analysis,
this paper finds issuing the Shariah-compliant sukuk
seems beneficial for liquidity management in Islamic
banking industry. Moreover, this Islamic bond helped to
Islamic banks to maintaining required Statutory
liquidity ratio (SLR) with the central bank as well as
supporting implementation of developing and
infrastructure government projects. The study suggested
some possible recommendation includes shariah-based
regulatory and implementing authorities; secondary
vibrant Islamic bond market; fiscal initiatives like tax
exemption, waiver on source-tax on sukuk; mudarabah
for BGIIB like bond and musharakah principle
underlying contracts for government public private
partnership (PPP) projects would be pondered for the
greater economic activities and GDP growth.
Keywords :
Islamic Bank, Liquidity Management, Sukuk, Shariah, Ijarah, Mudarabah, Musharakah, SLR.
The entire banking industry either
conventional or Islamic banks is crucial requirement to
maintain liquidity position by effectively and cautiously.
This article tries to explain the necessity of proper
Islamic securities for liquidity management in Islamic
banking industry of Bangladesh. Also this paper attempt
to explore the newly formed sukuk bond structure and
its further developing aspect in Bangladesh. In analysis,
this paper finds issuing the Shariah-compliant sukuk
seems beneficial for liquidity management in Islamic
banking industry. Moreover, this Islamic bond helped to
Islamic banks to maintaining required Statutory
liquidity ratio (SLR) with the central bank as well as
supporting implementation of developing and
infrastructure government projects. The study suggested
some possible recommendation includes shariah-based
regulatory and implementing authorities; secondary
vibrant Islamic bond market; fiscal initiatives like tax
exemption, waiver on source-tax on sukuk; mudarabah
for BGIIB like bond and musharakah principle
underlying contracts for government public private
partnership (PPP) projects would be pondered for the
greater economic activities and GDP growth.
Keywords :
Islamic Bank, Liquidity Management, Sukuk, Shariah, Ijarah, Mudarabah, Musharakah, SLR.
