Dhaka, Aug. 5 -- In a bid to strengthen the Islamic finance ecosystem, Bangladesh Bank has increased the allocation of government-issued Sukuk to Islamic banking branches and windows from 70 per cent to 80 per cent.
The revised allocation, announced in a circular on Sunday, aims to boost market participation among Shariah-compliant institutions and promote the use of Islamic financial instruments across the country.
The new distribution will benefit Islamic branches and windows of Shariah-based banks, non-bank financial institutions (NBFIs), and Islamic insurance providers.
Conventional banks operating Islamic banking windows will also be eligible for the increased share.
As part of the adjustment, the allocation for conventional banks,...