The central bank yesterday said it asked five cash-strapped Shariah-based banks to adjust the deficit in their current account but did not decide yet that the lenders would be removed from payment platforms. 

On November 28, the Bangladesh Bank sent letters to the managing directors of Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank and Global Islami Bank, instructing them to adjust their deficit within 20 working days.

The banks will be barred from all or any specific clearing platform in accordance with the agreement with the payments system departments of the central bank for their failure to adjust the deficit by the stipulated time, said the letter.

"The Bangladesh Bank issued the letter to warn them but has yet to take any decision to bar them from all or any specific clearing platforms," said Md Mezbaul Haque, executive director and spokesperson of the BB, in a media briefing at the central bank headquarters yesterday.

He said the central bank's Motijheel office issues the letters as part of its regular work.

Banks maintain a current account with the central bank to settle payments. They have to ensure a hefty balance in the accounts.

But the current accounts of the five banks have been in the deficit for the past year, according to the letter seen by The Daily Star.

"A review of your current account balance shows that it has been in the deficit for a long time and that is not consistent with normal banking activities. Although you have been repeatedly warned about the matter, no significant action has been taken by you until now," it said.

Haque said that providing liquidity support to the five banks has been part of the regular activity of the central bank.

"It is the responsibility of the central bank to support banks when they are in trouble."

He said the central bank has extended liquidity support to the banks without taking securities because they are holding a lower volume of government instruments than conventional banks.

While speaking about the reasons behind the liquidity shortfall, the spokesperson said there was a structural deficiency in Islamic banks and the BB would work on them in the future.

"In the past, we provided such liquidity facilities to other banks, including ICB Islamic Bank when they faced difficulties."

Haque said controlling inflation is now the top priority of the central bank and there is also external pressure.

"After tackling them, we will work on the good governance of troubled banks."