, April 4 -- Bangladesh Bank (BB) has initiated steps to launch an Islamic Interbank Money Market by June this year, aiming to improve liquidity management for Shariah-based banks.

At present, Islamic banks face difficulties during liquidity shortages as they are unable to participate in the conventional call money market used by traditional banks. The absence of a Shariah-compliant short-term funding mechanism often puts these institutions under financial strain.

The new marketplace is expected to provide an alternative financing avenue, making it easier for Islamic banks to trade short-term funds among themselves.

In designing the framework for this new market, the central bank has reportedly reviewed and analysed the successful mode...