Bangladesh Bank Governor Md Mostaqur Rahman on Saturday pledged to strengthen Shariah governance and institutional accountability in Islamic banking.
He said that robust oversight and a stronger regulatory framework are essential to restoring public confidence and ensuring the sector's sustainable growth.
He made the remarks while addressing a workshop where speakers stressed that stronger governance, enhanced Shariah compliance and greater institutional accountability are critical to sustaining public confidence as Islamic banking continues to expand in Bangladesh.
The observations were made at a workshop titled "Discussion on Shariah Roles of Chairman of Board of Directors in Islamic Banking Operations", jointly organised by the Bangladesh Institute of Bank Management (BIBM) and the Islamic Banks Regulation and Policy Department (IBRPD) of Bangladesh Bank at the BIBM campus in the city.
Speaking as the chief guest, the governor said a large proportion of depositors in Bangladesh prefer Islamic banking services, making it imperative to strengthen Shariah governance to protect public confidence.
He said Shariah councils must play a more proactive and effective role in ensuring compliance with Islamic principles, adding that Bangladesh Bank is giving the highest priority to strengthening governance standards to restore public trust and keep the banking sector free from political influence.
The governor also expressed optimism that Bangla QR would achieve nationwide adoption over the coming year, further promoting digital financial transactions.
Bangladesh Association of Banks (BAB) Chairman Abdul Hai Sarker said Bangladesh has a comparatively higher number of banks than many neighbouring countries, observing that a more rational number of banks would improve management, supervision and overall operational efficiency.
Deputy Governor Md Kabir Ahmed said the new regulatory framework assigns broader responsibilities to the Shariah compliance function and significantly strengthens institutional mechanisms for ensuring compliance.
He noted that the growing popularity of Islamic banking in Bangladesh makes robust Shariah governance indispensable for the sector's sustainable development.
BIBM Director General Md Ezazul Islam, who chaired the programme, said the rapid expansion of Islamic banking requires stronger Shariah governance and more effective compliance mechanisms.
He said adherence to Shariah principles enhances customer confidence while contributing to the stability, transparency and sustainable growth of the Islamic banking industry.
He also stressed the need for closer coordination among boards of directors, management and Shariah supervisory functions to build an internationally competitive Islamic banking system, reaffirming BIBM's commitment to supporting the sector through research, professional training and knowledge sharing.
In his inaugural remarks, Bangladesh Bank Executive Director and IBRPD head Md Ashraful Alam said the drafting of the Islamic Banking Act was now in its final stage.
He expressed hope that the new legislation would further strengthen the regulatory framework and enhance transparency, efficiency and accountability in Islamic banking operations.
The workshop featured three technical presentations by members of Bangladesh Bank's Shariah Advisory Board on the application of Islamic legal maxims in banking and finance, the Shariah Governance Framework and its implications for Islamic banking operations in Bangladesh, and the Shariah responsibilities of chairmen of boards of directors in Islamic banks.
The event concluded with an open discussion during which participants exchanged views and offered recommendations on strengthening governance, Shariah oversight and the overall development of Islamic banking in Bangladesh.
The programme was attended by directors of Islamic banks, senior officials of Bangladesh Bank, scheduled banks and financial institutions, as well as academics, researchers and banking professionals from across the country.
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