DHAKA: The Islamic Interbank Fund Market (IIFM) will start functioning Sunday in a bid to strengthen the liquidity management and reduce liquidity risks of Islamic Banks.
Bangladesh Bank governor Dr. Atiur Rahman is set to inaugurate the IIFM function on Sunday noon. Among others, the chief executives of Islamic Banks are expected to be present at the inaugural session.
AFM Asaduzzaman, Managing Director of BB Governor Secretariat, confirmed banglanews about the matter on Saturday.
Earlier on December 27, IIFM was introduced for the sharia-based banks in Bangladesh through a circular.
According to the circular, the sharia-based call money market, the banks will transact with each other through a separate fund which will be under the custodianship of the central bank.
According to proposed rules, if any bank has excess fund, it will invest the amount in the IIFM for one day.
Another Islamic bank requiring fund will borrow the money from the IIFM for one day.
The rate of profit in the Islamic bank call money market will be determined on the basis of the profit the bank gives to its depositors on a three months` deposit.
BDST: 0916 HRS, June 3, 2012
Edited by: Maria Salam, Asst Output Editor
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