Bangladesh has started its Islamic banking journey through the formation of the Islamic Bank Bangladesh Limited in 1983.
Currently, according to the Bangladesh Bank report of September 2020, Bangladesh has 8 (eight) fully-fledged Islamic banks, 19 Islamic banking branches of 9 conventional commercial banks and 166 Islamic banking windows of 12 conventional commercial banks are also providing Islamic financial service in Bangladesh.
Bangladesh Islamic banking sector plays a significant role in mobilizing deposits and financing various economic activities.
Among different segments of Bangladesh’s Islamic finance industry, the Islamic banking industry dominates with almost 25 percent share of the entire banking sector.
Islamic Banking is growing rapidly in Bangladesh and contributing a significant role in the banking and economic sector.
According to Bangladesh Bank sources at end of the September 2020, Islamic Banking deposits increased 9.72 percent compared to June 2020 and 21.94 compared to the same month of the last year. Islamic Banking Investment has increased end of September 3.10 percent compared to June and 10.04 percent compared to the end of the same month of the preceding year.
Islamic Banking Liquidity has increased 95.51 percent compared to June and 195.75 percent end of the same month of the last year.
Islamic Banking Sector is a significant role in remittance, end of September 73.92 percent higher than June and 51.36 percent higher than the same period of last year.
In September 2020, Islamic Banking operates 1464 Branches which was the end of the June 1448 branches, and 1301 at the end of September of last year.
The total number of employment 38125 ends of September in 2020 which was 36582 end of June and 36337 was at end of September 2019.
As well as Islamic Banks undertake and implement various types of social programs under Corporate Social Responsibility (CSR) activities.
These funds are spent among different types of education, training, health, and charity-based organizations in Bangladesh.
Expenditure on CSR activities during July-September 2020 quarter had been recorded at Tk 954.50 million.
According to a statement of BIBM, Bangladesh ranked 10th in the world in terms of Islamic banking. Sudan came first and Iran second, while Saudi Arabia stood fourth and Pakistan 13th.
Md. Serajul Islam, Executive Director of Bangladesh Bank said, the Islamic Banking sector achieved a place of trust of people by their service.
They are doing well all over the part in banking as well as the deposit, investment, liquidity with others.
Besides Islamic Banking is a part of confidential and religious fact.
Even then I would say the reason for raising their position is better service than other banking.
Most of the bank tries to hunting deposit through a door to door but Islamic Banking sector gets their deposit in office through of people to people.—Agencies