Bangladesh Bank has confirmed that it has issued a letter to five Shariah-based banks regarding prevention of transactions.

However, the final decision has not been taken yet, said Mezbaul Haque, Executive Director and spokesperson of the central bank.

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In an urgent press briefing at Bangladesh Bank headquarters on Sunday, the spokesperson said as per the regular operation of the central bank’s Motijheel office, they issued the letter.

The five banks are Islami Bank, First Security Islami Bank, Social Islami Bank, Global Islami Bank, and Union Bank.

These banks are offering double benefits and other lucrative profit-sharing offers for term deposits to meet the liquidity crisis. But clients are reluctant as the banks are mired in several loan scams, banking sector insiders said.

On Friday, several media reports said that transaction services of these five banks are about to be stopped due to current account deficits. Some of these banks claimed that the reports are not true.

Bangladesh Bank today arranged an urgent press conference to clear the issue involving the five Islami banks. Of them, Islami Bank Bangladesh PLC is the highest deposit holding bank in the private sector.

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Mezbaul said, “The current account status of Bangladesh Bank with these banks has been negative for a long time. Banks have not taken any significant action despite being repeatedly informed about the matter.”

As a result, the central bank has set a period of 20 days for adjusting the negative balance of the current account.

Bangladesh Bank said that if the negative current account balance is not adjusted within 20 days, the five Islami banks will be prevented from clearing or settlement arrangements.