Bangladesh Bank (BB) Governor Md. Mostaqur Rahman has emphasized the necessity of stronger governance and effective Shariah compliance in the country's Islamic banking sector. He stated that these measures are essential for restoring public confidence and ensuring sustainable growth. A significant portion of depositors in Bangladesh prefers Islamic banking services, making sound governance and credible Shariah oversight more crucial than ever.
Governor's Remarks at Workshop
The BB chief made these remarks while speaking as the chief guest at a workshop titled "Discussion on Shariah Roles of Chairman of Board of Directors in Islamic Banking Operations" at the Bangladesh Institute of Bank Management (BIBM) in Dhaka. Mostaqur Rahman highlighted that the Shariah Council must play a more proactive and effective role in safeguarding public confidence in Islamic banking.
Importance of Shariah Compliance
He mentioned that Bangladesh Bank is attaching the highest priority to strengthening governance standards across the banking sector to restore public trust and ensure that banks remain free from political influence. Stronger institutional governance, coupled with effective Shariah compliance, would help enhance transparency, accountability, and long-term stability in Islamic banking.
Digital Financial Transformation
Referring to the country's digital financial transformation, the governor expressed confidence that Bangla QR would witness widespread nationwide adoption over the coming year, accelerating cashless transactions and expanding financial inclusion.
Workshop Insights
The workshop was jointly organized by the Bangladesh Institute of Bank Management and the Islamic Banks Regulation and Policy Department of Bangladesh Bank. Deputy Governor Md. Kabir Ahmed noted that the new regulatory framework assigns broader responsibilities to the Shariah compliance function and strengthens institutional mechanisms to ensure compliance. Robust Shariah governance has become indispensable amid the growing popularity of Islamic banking.
Future Regulatory Framework
Executive Director of the Islamic Banks Regulation and Policy Department Md. Ashraful Alam said the draft Islamic Banking Act is now in its final stage. He expressed hope that the proposed law would strengthen the regulatory framework and enhance transparency, efficiency, and accountability in Islamic banking operations.
