DHAKA, July 04, (V7N) — Bangladesh Bank (BB) Governor Md. Mostaqur Rahman today stressed the need for stronger governance and effective Shariah compliance in the country’s Islamic banking sector, saying both are key to restoring public confidence and ensuring sustainable growth.
“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 as chief guest at a workshop titled “Discussion on Shariah Roles of Chairman of Board of Directors in Islamic Banking Operations” held at the Bangladesh Institute of Bank Management (BIBM) in the city.
Mostaqur Rahman said the Shariah Council must take a more proactive and effective role to safeguard public confidence in Islamic banking.
He noted that Bangladesh Bank is giving top priority to strengthening governance standards across the banking sector to restore public trust and keep banks free from political influence.
Stronger institutional governance, combined with effective Shariah compliance, would boost transparency, accountability, and long-term stability in Islamic banking, he added.
On digital finance, the governor expressed confidence that Bangla QR would see widespread nationwide adoption over the next year, speeding up cashless transactions and expanding financial inclusion.
The workshop was jointly organized by BIBM and the Islamic Banks Regulation and Policy Department of Bangladesh Bank.
Deputy Governor Md. Kabir Ahmed said the new regulatory framework gives broader responsibilities to the Shariah compliance function and strengthens institutional mechanisms to ensure compliance. He added that robust Shariah governance has become indispensable as Islamic banking grows in popularity.
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. He expressed hope 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 BB officials, representatives of scheduled banks and financial institutions, academics, researchers, and banking professionals to discuss strengthening governance and Shariah oversight in the sector.
END/AJ/RH
