Islamic transactions snare 25pc of country's total banking assets

At present, the market share of assets of the Islamic banking industry is around 25 per cent of the country's total banking assets.

Among the top 35 jurisdictions in terms of domestic market share of Islamic banking, Bangladesh is ranked 10th", according to the latest country report of Islamic Finance News (IFN), world's leading Islamic finance news provider.

IFN is a publication of Redmoney Group of Malaysia, the foremost global provider of specialized Islamic finance media services.

It published the country report on Islamic banking in Bangladesh titled, "Potential growth on Islamic banking in Bangladesh" in its 15th anniversary issue published in last month.

"Bangladesh is currently experiencing potential growth in Islamic banking and finance due to rapid expansion in the sector. An important advancement in the last few years has been the entry of 16 conventional banks in Bangladesh Islamic finance industry and the use of Islamic methods of financing through their Islamic banking branches, windows or units in addition to their interest-based branches," the report authored by Md. Touhidul Alam Khan, Deputy Managing Director of Prime Bank Ltd, said.

"The advancement provides the need and encouragement towards the globalization of Islamic banking, which includes some of the giants in the banking and financial industry".

"As Islamic finance and banking have become reasonably important in the global financial markets, especially in Asia, it has the potential to contribute successfully to the innovative development goals. It can ensure financial stability as well as include growth, and also effectively address development challenges for the region," the report mentioned.

Indeed, Islamic finance has made significant strides amid a challenging financial environment and has transcended beyond Muslim-majority economies. The sustainability and resilience are due to its underlying shariah principles, which has in-built elements that demands a strong economic linkage that is also anchored on ethical considerations. Over the years, Islamic finance has achieved the crucial mass for the industry to be recognized as mainstream finance. It has also received international recognition as a form of finance that increases access to finance and the potential for the eradication of poverty and for preserving financial stability, says its cover letter in celebrating the 15 years' issue of IFN (2004-2019).

"In Asia, the value of Islamic financial assets has been estimated to exceed US$1.0 trillion by 2023. Among the different segments of Bangladesh's Islamic finance industry, Islamic banking industry plays a dominating role. Since Sharjah is the backbone of the Islamic banking industry, a legal framework can be implemented to ensure proper flow and monitoring of this rapidly growth sector", says the country report.

This is the 4th country report authored by Touhidul Alam Khan on Islamic Banking in Bangladesh for IFN and the IFN recently selected him as an international correspondent from Bangladesh.

Khan also moderated a panel discussion in an international IFN Roadshow, organized by Redmoney Group, Malaysia.

More than 45 country reports have been published in the IFN anniversary issue on Islamic banking operation and development in respective countries.