Standard Bank wrapping up preparations to become an Islamic bank

The Bangladesh Bank on Thursday approved Standard Bank’s application to keep some of its banking services closed from December 30 to January 4 next year, to ease its transition into an Islamic bank from a conventional one.

From early January, Standard Bank will be a bank following Shariah principles, said its Managing Director Khondoker Rashed Maqsood.

The bank got the BB nod on February 9 to make the switch to Islamic banking.

As part of the transition, it has sent in an application to the central bank for a temporary closure of its services linked to the Bangladesh Automated Clearing House (BACH), the Bangladesh Electronic Funds Transfer Network (BEFTN), digital banking and the real-time gross settlement (RTGS).

The shutdown would help them in completing the migration process, said a notice from the BB.

The temporary shutdown was approved per Section 45 of the Bank Company Act, 1991.

According to the notice, the banking services will remain closed from 6 pm of December 30 until 10 pm on January 4 next year.