Economic Reporter :
Bangladesh Bank (BB) has relaxed the policy of the “Islamic Refinance Fund Account” which has been formed for Shariah-based funding with the particular aims of creating jobs in rural areas by helping existing agro-based industries and creating new entrepreneurs.
“From now on, Islamic banks and Financial Institutions (FIs) can invest for one year period. Earlier, they could invest for three months,” said a BB circular on Sunday.
Islamic banks and FIs will back the refinance fund to the Bangladesh Bank every year including profit in the cumulative installment, the circular added.
But Islamic banks and FIs can withdrawal the fund for a period of one year till the main investment period, the circular said.
BB created the fund against the backdrop of repeated request from these Islamic banks as the banks were not able to get any fund from the existing interest-based refinance funding schemes.
Bangladesh Bank (BB) has relaxed the policy of the “Islamic Refinance Fund Account” which has been formed for Shariah-based funding with the particular aims of creating jobs in rural areas by helping existing agro-based industries and creating new entrepreneurs.
“From now on, Islamic banks and Financial Institutions (FIs) can invest for one year period. Earlier, they could invest for three months,” said a BB circular on Sunday.
Islamic banks and FIs will back the refinance fund to the Bangladesh Bank every year including profit in the cumulative installment, the circular added.
But Islamic banks and FIs can withdrawal the fund for a period of one year till the main investment period, the circular said.
BB created the fund against the backdrop of repeated request from these Islamic banks as the banks were not able to get any fund from the existing interest-based refinance funding schemes.
