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    Islamic Banking in Bangladesh

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    tarique al ziad
    The document is a presentation on Islamic banking in Bangladesh that discusses: 1) The objectives of studying the current status, performance compared to conventional banking, challenges, and growth opportunities of Islamic finance institutions in Bangladesh. 2) The methodology used which was a descriptive study based on various data sources about Islamic banking as the target population. 3) Some of the key findings including that Islamic banking is more profitable than conventional banking and two conventional banks recently converted to Islamic banks. 4) Recommendations such as the central bank becoming Islamic and addressing difficulties with Islamic bank transactions.

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    Islamic Banking in Bangladesh

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    tarique al ziad
    86 views13 pages
    The document is a presentation on Islamic banking in Bangladesh that discusses: 1) The objectives of studying the current status, performance compared to conventional banking, challenges, and growth opportunities of Islamic finance institutions in Bangladesh. 2) The methodology used which was a descriptive study based on various data sources about Islamic banking as the target population. 3) Some of the key findings including that Islamic banking is more profitable than conventional banking and two conventional banks recently converted to Islamic banks. 4) Recommendations such as the central bank becoming Islamic and addressing difficulties with Islamic bank transactions.

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    islamic banking in bangladesh

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    The document is a presentation on Islamic banking in Bangladesh that discusses: 1) The objectives of studying the current status, performance compared to conventional banking, challenges, and growth opportunities of Islamic finance institutions in Bangladesh. 2) The methodology used which was a descriptive study based on various data sources about Islamic banking as the target population. 3) Some of the key findings including that Islamic banking is more profitable than conventional banking and two conventional banks recently converted to Islamic banks. 4) Recommendations such as the central bank becoming Islamic and addressing difficulties with Islamic bank transactions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    86 views13 pages

    Islamic Banking in Bangladesh

    Uploaded by

    tarique al ziad
    The document is a presentation on Islamic banking in Bangladesh that discusses: 1) The objectives of studying the current status, performance compared to conventional banking, challenges, and growth opportunities of Islamic finance institutions in Bangladesh. 2) The methodology used which was a descriptive study based on various data sources about Islamic banking as the target population. 3) Some of the key findings including that Islamic banking is more profitable than conventional banking and two conventional banks recently converted to Islamic banks. 4) Recommendations such as the central bank becoming Islamic and addressing difficulties with Islamic bank transactions.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Welcome to my

    Presentation

    “Islamic Banking in Bangladesh:


    Challenges and Prospects”
    Supervised by
    Dr. Mostofa Mahmud Hasan
    Associate Professor & Chairman,
    Faculty of Business Administration
    EXIM bank Agricultural University
    Bangladesh

    Prepared By
    Md Tarique Al Ziad Shuvo
    ID: MBAA2018000063
    Department of Finance
    Faculty of Business Administration
    EXIM Bank Agricultural University Bangladesh
    What is Islamic Bank
    Islamic banking is a banking system that is consistent with the principles
    of the Shari’ah.

    The Organization of Islamic Cooperation (OIC) defined Islamic


    Bank as “a financial institution whose statutes, rules and
    procedures expressly state its commitment to the principles
    of Islamic Sharia and to the banning of the receipt and payment of
    interest on any of its operations.
    Origin of the Report
     The internship program is an obligatory requirement for the
    students who wish to be an MBA post graduate from EBAUB
    University. This report has been equipped with my experience on
    the day to day banking activities, academic knowledge and under
    close direction of my core support as well as my official supervisor.
    The report entitled “Islamic Banking in Bangladesh: Challenges
    and Prospects” has been completed as a fulfillment of MBA
    program
    Objectives of the Study

    I. Analyze the current status of the industry


    II.Compare performance with the conventional banking industry
    III.Identify the challenges faced by Islamic Finance institutions in
    Bangladesh
    IV.Identify the growth opportunities for the Islamic Banking
    products and services
    METHODOLOGY
    Type of study: This research is a descriptive research in nature.
    Types of data: This report is based on sources of data collection.
    Population: The report has been arranged “Islamic Banking in
    Bangladesh: Challenges and Prospects” considered as target
    population of the study.
    Sample size: Many Islamic bank has been taken as the sampling
    unit for the study.
    Sampling techniques: Convenient sampling technique has been
    applied to select sample for the purpose of the study
    Origin of Islamic Banking

    The most important principles that characterize Islamic Banking are the
    prohibition of the payment of interest (Riba), sale of risky assets (Gharar)
    and gambling or speculation. Islamic finance is a financial service that is
    compliant with the main tenets of Islamic law which comes from the Holy
    Quran, Hadith, Sunna, Ijma, Qiyas and Ijtihad.
    “I S L A M I C” P R O D U C T S
     Deposit products
     AL Wadiah
     AL Murabaha

     Investment products
     Mudaraba
     Murabaha
     Sukuk

     Financing products
     Musaraka
     Ijarah
     Quard hasana

     Insurance products
     Takaful
    Islamic Vs Conventional Banking

    1. The oversight of a sharia board


    A sharia board consists of Islamic scholars who are qualified to give opinions on Islamic business contracts. In a commercial
    bank, the board is also involved in supervising bank operations to make sure they comply with sharia principles. (Prohibiting
    usury, avoiding speculation and gambling,
    investing ethically.)

    2. Investments in the bank


    -Investments in conventional commercial banks are based on guaranteed
    principal and earning a fixed amount of income.
    -In Islamic banking, the concept of investment is different : Although the
    customer deposits the money, the principal isn’t guaranteed and the bank
    isn’t liable to pay the money to its customer.
    Findings

    Banking industry contributes a lot in the economic development of our country. Islamic Banks have significant

    contributions towards the growth and economic development of Bangladesh.

    Islamic banking is more profitable than conventional banking.

    Profit-Loss sharing method represents economic advantages.

    Religious beliefs of potential customers.

    Recently two conventional banks are converted as Islamic bank that’s are Standard Bank & NRB Global Bank.

    There are eight conventional banks apply for convert as Islamic bank, like Prime Bank.

    The Asset quality is better than conventional banks

    In every conventional bank open Islamic banking Window.

    Islamic bank cannot support to invest in prohibited business.

    Profit less are lower but risk free.


    Recommendations
     The central Bank of Bangladesh are conventional, Islamic banks are properly work if the central bank will be
    Islamic Shariah base bank.

     When Islamic bank transection with the conventional bank, it will arise the problem.

     Most of the banks of Bangladesh are conventional so it is biggest problem to convert Islamic bank.

     People are not sincere about Islamic Shariha, so we should to be sincere.

     Islamic bank sells and buy product that is difficult for customer.

     Difficulties to devise a successful interest-free mechanism to place their funds on a short-term basis

     lack of Unified Shariah rulings,

     absence of Islamic Inter-Bank Money Market.

     shortage of Skilled and Trained Manpower in Islamic Shariah banking,

     lack of Familiarity by International Financial and Non-financial Sector with Islamic Products and procedures.

     Insufficient Budget for Research and Development.

     lack of Shariah Manual or Guidelines and lack of Intention of the Management to be strict with Shariah
    Conclusion

    Islamic Financial System can bring out the most efficient banking system if
    it gets support from the private and public bodies in terms of governance
    and direction. This study tries to shed light on the current challenges and
    prospects of the Islamic finance industry. The information presented in this
    paper can be used in further research to test the application of modern stress
    testing tools of Islamic finance. The data presented here can also be used to
    find out the key factors of success in Islamic finance in Bangladesh.
    Do you have any questions?

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