BB chief for Shariah compliance to restore confidence in Islamic Banking

"A large share of depositors in Bangladesh prefers Islamic banking services, making sound governance and credible Shariah oversight more important than ever," he said.

The BB chief made the 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 the city.

Mostaqur Rahman said that the Shariah Council must play a more proactive and effective role in safeguarding public confidence in Islamic banking.

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.

He emphasized that stronger institutional governance, coupled with effective Shariah compliance, would help enhance transparency, accountability and long-term stability in Islamic banking.

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.

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 said the new regulatory framework assigns broader responsibilities to the Shariah compliance function and strengthens institutional mechanisms to ensure compliance, adding that robust Shariah governance has become indispensable amid the growing popularity of Islamic banking.

Chairman of the Bangladesh Association of Banks, Abdul Hai Sarker, observed that Bangladesh has comparatively more banks than many neighboring countries and said a more rational number of banks would improve management, supervision and operational efficiency.

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 and expressed hope that the proposed law would strengthen the regulatory framework and enhance transparency, efficiency and accountability in Islamic banking operations.

The workshop brought together board members of Islamic banks, senior officials of Bangladesh Bank, representatives of scheduled banks and financial institutions, academics, researchers and banking professionals to discuss strengthening governance and Shariah oversight in the country's Islamic banking sector, reports BSS.