Covid helps boost Islamic financial markets: Experts

Published : 17 Oct 2020 07:45 PM | Updated : 17 Oct 2020 07:45 PM

Speakers at a webinar on Saturday observed that the Covid-19 is shifting the dynamics in the banking industry and the outbreak has created new opportunities for Islamic finance markets by accelerating trends such as socially responsible investing, sustainability, and digitalization”

They said the aftermath of Covid-19 may also create new opportunities for Islamic banking, particularly with the rise of socially responsible investing and the growing popularity of ESG.  

The webinar on covid-19 and risk management for Islamic banks: proposal for the new normal scenario was organized by the Bangladesh Institute of Bank Management (BIBM) in association with INCEIEF (The Global University of Islamic Finance). 

Dr. Md. Akhtaruzzaman, Director General of BIBM Chaired the Program. Dr. Shah Md. Ahsan Habib, Professor of BIBM delivered welcome address. 

Experts further said that the country or area-specific surveys and activities also came up with strong opinions in favour of green and sustainable recovery measures. 

They opined that beyond its immediate economic implications, Covid-19 is also forcing the Islamic finance industry to adapt to the rapidly evolving market conditions and speeding up the pace of emerging trends such as digitalization to mitigate the impact of the outbreak. 

The global Islamic banking software market size is expected to grow by USD 460 million during 2020-2024, and the report  noted that as a whole the new opportunities are created due to the Covid-19 pandemic. A paper titled ‘covid-19 and risk management for Islamic banks: proposal for the new normal scenario’ was presented in the program by Dr. Shah Md. Ahsan Habib, Professor of BIBM. Other members of the research team are Dr. Md. Mahabbat Hossain, Assistant Professor of BIBM.

M. Azizul Huq Chairman (Acting), CSBIB; and Chairman, Board of Directors of Pubali Bank Limited; Assistant Professor Dr. Ziyaad Mahomed Associate Dean/Director Executive Education & E-Learning of INCEIF; Md. Mahbub-ul-Alam, Managing Director & CEO of Islami Bank Bangladesh Limited; Ahmed Firas Head of Shariah HSBC Amanah Malaysia Barhad spoke among others.  A good number of participants including senior bank executives, academicians, media representatives, faculty members of BIBM took part in the webinar. They opined that one of the many issues this pandemic has shown to the globe is that survival depends heavily on investment in science, technology, and innovation (Bicer, 2020).