Bangladesh is currently experiencing potential growth in Islamic banking and finance due to rapid expansion in the sector, said a report published by the world famous Islamic Finance News (IFN), published recently specially on the recent scenario of Islamic banking of Bangladesh.
IFN, the world’s leading Islamic Finance News provider, published a country report on Islamic Banking in Bangladesh titled, “Potential growth on Islamic Banking in Bangladesh” in their 15th Anniversary Issue published January 2020.
“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 advancement provides the need and encouragement towards the globalization of Islamic banking, which includes some of the giants in the banking and financial industry”, told in the country report authored by Md. Touhidul Alam Khan, Deputy Managing Director of Prime Bank.
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 their cover letter in celebrating the 15 years’ issue of IFN (2004-2019).
IFN, is a publication of Redmoney group of Malaysia, the foremost global provider of specialized Islamic finance media services across three crore divisions of training, events, publishing and training. It is a digital weekly publication journal which provides exclusive and comprehensive coverage of the global Islamic financial markets through in-house analysis and expert from external contributions.
“At present, the market share of assets of the Islamic banking industry is around 25% of the country’s total banking assets, enabling Bangladesh to achieve domestic systematic importance. Among the top 35 jurisdictions in terms of domestic market share of Islamic banking, Bangladesh is ranked 10th”, according to country report.
More than 45 country reports have been published in their anniversary issue on Islamic banking operation and development in respective counties including Bangladesh.
“In Asia, the value of Islamic financial assets has been estimated to exceed US$1 trillion by 2023. Among the different segments of Bangladesh’s Islamic finance industry, Islamic banking industry dominates. 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.
Md. Touhidul Alam Khan, who is also the fellow member of Institute of Cost & Management Accountants of Bangladesh (ICMAB) mentioned in his report, “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.”
This is the 4th country report of Touhidul Alam Khan on Islamic Banking in Bangladesh wrote for IFN as contributor and the IFN recently selected him as an international correspondent from Bangladesh, which is a very prestigious one for the country. Khan also moderated a panel discussion in a international IFN Roadshow, organized by Redmoney Group, Malaysia.
He is the Post Graduate Diploma in Islami Banking from Institute of Islamic Banking & Insurance (IIBI), United Kingdom and the first Certified Sustainability Reporting Assurer (CSRA) in Bangladesh. Currently as the Deputy Managing Director Khan is holding position of the Chief Anti Money Laundering Compliance Officer (CAMLCO) & Chief Risk Officer (CRO) of Prime Bank Limited. He also presented key note paper in international conference on Sustainable Developnent Goals (SDGs) recently in Bangkok, Thailand and Bali, Indonesia.
The world is evolving into a digitalized economy at unimaginable pace, magnitude and scope. The imperative is thus to transform Islamic finance by embracing and integrating disruptive technologies, particularly those that promotes trust, enhances transparency and generates greater accountability. To sustain the growth momentum, relevance and sustainability of Islamic finance, this change is inevitable.