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Islamic banks can encourage startups to generate jobs

Says Dr Salehuddin

June 18, 2023 00:00:00

Former governor of Bangladesh Bank, Dr Salehuddin Ahmed, on Saturday said Islamic banks can work to encourage youth-led startups for employment by providing investment in nominal profit margin, which is the broader perspective of Islamic finance, reports UNB.

He said this while speaking as the chief guest at the inaugural ceremony of the Bangladesh Institute of Islamic Finance (BIIF), a training institution for Islamic financing, held at Motijheel.

Professor Mahbub Ahmed of DU, founding chairman of BIIF, presided over the event. Dr Muhammad Fouzul Kabir Khan, former secretary; Dr Muhammad Abdul Mazid, former chairman of the NBR; Farid Uddin Ahmed, Chairman of the Executive Committee of Central Sharia Board for Islamic Banks of Bangladesh; Professor Dr. Mahmuda Akhtar, Executive President of Bangladesh Institute of Capital Market (BICM); Professor Dr. Abdul Latif Masum, former VC of Patuakhali Science and Technology University (PSTU); and Dr M Abdul Aziz, founding director of BIIF, also spoke at the event.

Dr Salehuddin said higher interest and compound interest work as a barrier for entrepreneurs, this is why Europe and the United States have formed separate equity systems for Islamic financing along with the research panel.

He said there are many Islamic banks and general banks that have opened Islamic banking wings, but quality Islamic banking is lagging behind in line with the global standard, due to lack of knowledge and regulations. Dr Salehuddin emphasized that Islamic banks work for human welfare, creating opportunities for the deprived in the sense of social justice of Islamic financing.

Dr Abdul Mazid said due to lack of knowledge and talented human resources, Islamic financing cannot work properly, and training institutes like BIIF can offer diploma programmes for Islamic banking and financing.

Professor Mahbub said Islamic financing should be included in the academic curriculum in the universities, as there are 12 Islamic banks in the country and some other banks have Islamic banking wings.

"The world-famous Cambridge and Oxford universities have several disciplines on Islamic financing and banking, so why not in Bangladesh?"-he pointed out.

Dr Salehuddin along with other guests inaugurated the BIIF and uncovered a book on Islamic banking.

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