Islamic banking accounts for about 25pc of total deposits
FE Report | Monday, 30 June 2008
Islamic banking now accounts for about 25 per cent of the total deposits and 27 per cent of the investment of the country's banking sector.
It was only 13 per cent of the total deposits and 15 per cent of the investment two years back.
A seminar titled ' Islamic banking-A fallacy or reality' was told this Sunday in the city.
Millennium Information Solution Ltd arranged the seminar chaired by former Bangladesh Bank Deputy Governor Shah Abdul Hannan.
Presenting a keynote paper in the seminar, Professor M Kabir Hassan said Islamic Finance has been growing tremendously at an average rate of 15 per cent to 17 per cent per year in the world economy.
"In recognition to the growing potential of the Islamic Finance Industry, global financial institutions including Merryl Lynch, HSBC, BNP Paribas, UBS, Citibank and Goldman Sachs entered the market," he said.
He further said a regulatory framework for Islamic banks must be broadened to achieve the benefits of standardization and maturity.
Former finance advisor Shoeb Ahmed was the chief guest in the programme while Mr. Mahmud Hossain, CEO of Millennium Information Solution Ltd gave the welcome address.
Shoeb Ahmed said the country has already passed 25 years in Islamic banking and the gap between rich and poor should be reduced to a large extent with the adoption of Shariah-based financial systems.
Experts said Japan's decision to explore issuing Islamic bonds is the latest step forward for a booming sector that has broken out of its niche market and is being embraced by mainstream banks and businesses.
Islamic finance, banking and insurance complies with sharia or Muslim religious laws that ban the earning of interest, or involvement in alcoholic drinks and gambling.
From basic bank deposits and investment accounts, the sector has expanded into complex areas including equity funds, bonds and Islamic hedge funds and swap equivalents, and more new products are in the pipeline.
In a bid to facilitate and streamline the country's flourishing Islamic banking business, the Bangladesh Bank has already issued a comprehensive guideline for Shariah-based banks.
Presently, Islami Bank Bangladesh Ltd, Al Arafah Islami Bank, Social Investment Bank, Shahjalal Islami Bank, Exim Bank and ICB Islami Bank (formerly Oriental Bank Ltd) are involved in shariah-based Islami Banking.
On the other hand, AB Bank, Prime Bank and some other private commercial banks have opened branches on Islami banking.
It was only 13 per cent of the total deposits and 15 per cent of the investment two years back.
A seminar titled ' Islamic banking-A fallacy or reality' was told this Sunday in the city.
Millennium Information Solution Ltd arranged the seminar chaired by former Bangladesh Bank Deputy Governor Shah Abdul Hannan.
Presenting a keynote paper in the seminar, Professor M Kabir Hassan said Islamic Finance has been growing tremendously at an average rate of 15 per cent to 17 per cent per year in the world economy.
"In recognition to the growing potential of the Islamic Finance Industry, global financial institutions including Merryl Lynch, HSBC, BNP Paribas, UBS, Citibank and Goldman Sachs entered the market," he said.
He further said a regulatory framework for Islamic banks must be broadened to achieve the benefits of standardization and maturity.
Former finance advisor Shoeb Ahmed was the chief guest in the programme while Mr. Mahmud Hossain, CEO of Millennium Information Solution Ltd gave the welcome address.
Shoeb Ahmed said the country has already passed 25 years in Islamic banking and the gap between rich and poor should be reduced to a large extent with the adoption of Shariah-based financial systems.
Experts said Japan's decision to explore issuing Islamic bonds is the latest step forward for a booming sector that has broken out of its niche market and is being embraced by mainstream banks and businesses.
Islamic finance, banking and insurance complies with sharia or Muslim religious laws that ban the earning of interest, or involvement in alcoholic drinks and gambling.
From basic bank deposits and investment accounts, the sector has expanded into complex areas including equity funds, bonds and Islamic hedge funds and swap equivalents, and more new products are in the pipeline.
In a bid to facilitate and streamline the country's flourishing Islamic banking business, the Bangladesh Bank has already issued a comprehensive guideline for Shariah-based banks.
Presently, Islami Bank Bangladesh Ltd, Al Arafah Islami Bank, Social Investment Bank, Shahjalal Islami Bank, Exim Bank and ICB Islami Bank (formerly Oriental Bank Ltd) are involved in shariah-based Islami Banking.
On the other hand, AB Bank, Prime Bank and some other private commercial banks have opened branches on Islami banking.