Development of Islamic Bank in Bangladesh.

Prepared ByMd Sajal Islam

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Contents:1. Background of BD2. What is Islamic Bank3. History of Islamic Bank4. List of Islamic Bank in BD5. Objective of Islamic Bank6. Importance of IB7. Principle of Shariah of IB8.Islamic Financial Market in BD9. Islamic Deposit Market in BD10. Services of IB in BD11. Islamic Banking and Financing Growth12. Barriers in Islamic Banking and Finance

1.Background of Bangladesh

Bangladesh Capital DhakaLanguage Bengali Area 147570 km2

Population 14.23 billion Religion (90% I)(8% H) (1%B) (1%C)Currency Taka (BDT)GDP $324.628 billion

2. What is Islamic Bank?

o consistent with Islamic law (Sharia)

o guided by Islamic economics.

o Islamic law prohibits

3. History of Islamic Bank

4.List of Islamic Bank In Bangladesh

• Islami Bank Bangladesh Ltd

• Shahjalal islami bank ltd• First Security Islami

Bank Limited• Export Import Bank of Ba

ngladesh Limited• Al-Arafah Islami

Bank Limited• Social Islami

Bank Limited• ICB Islamic Bank• Union Bank Limited

5. Objective of Islamic Bank

• Profit, monitory and morality • Avoid interest in all from of

Transactions• Undertaking business

activities on the basis of fair and legitimate profit.

• Developed Environment• Utilize Resources in Islamic

way• Economics development and

enhanced environment for peace.

6. Importance of Islamic Bank

• Allah's Orders• Halaal Earnings• Encouragement• Dawaah • Interest Free Tread• Unity

7. Principles of Shariah in Islamic Bank

• Profit and Loss sharing principles Mudaraba Musharaka

• Fees or Charges based principles Murabaha Bai mu’azzal Ijara

• Ancillary principles Wadiah BBA

8. Islamic Financial Market

• Capital Market• Money Market• Mortgage Market• Forward and Future Market• Islamic Inter-Bank

Investment

9.Deposit products in Bangladesh

• Current Accounting • Savings Accounting• Investment Deposit• Other Deposit

10.Services of Islamic bank in BD

• NRB service• SME service• SWIT service• ATM service• Mobile banking• Internet banking • Any branch service• Remittance card service• Locker service• Foreign Exchange Business

service

11. Islamic Banking & Finance Growth in BD

Years BDT

31 August 2013 4,811,001,145

30 April 2013 4,241,446,291

31 Dec 2012 3,524,439,741

3 August 2012 3,153,564,440

30 April 2012 2,947,001,192

31 Dec 2011 2,243,574,190

31 August 2011 2,045,356,143

30 April 2011 1,903,542,210

Net Profit

0

100

200

300

400

500

600Net Profit

Net Profit

Equity 6130.36 million

Deposit 107,779.50 m

Investment 179,465.76 m

Foreign Exchange

110,059 m

Shareholders 15,741

Branches 270

Employee 10,000

12.Barriers of Islamic Banking & financial

• Risk weighting• Regulation and legal

frameworks• Financial reporting• International politics

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