Who should pay for Islamic banks' bad investments?
Abstract
While Islamic banking's significant market share and systemic importance within the banking system are often highlighted as notable achievements, a troubling reality undermines this success: a substantial portion of investments in several Islamic banks are non-performing. To contain systemic risks and avoid destabilising the banking system, the central bank has merged five of the 10 full-fledged Islamic banks into the state-backed Sammilito Islami Bank. With a large volume of non-performing investments (NPIs), the Islamic banking sector's urgent priorities include asset recovery, liquidity management, and restoring confidence.
Keywords
Islamic banks , Islamic banking , Investments
Citation
Ahmed, M. U. (2026, April 13). Who should pay for Islamic banks' bad investments? The Daily Star.
Publisher
The Daily Star