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Functions, Prospects, and Challenges of Shari’ah-Based Banking: Islami Bank Bangladesh Limited

  • Jashim Uddin AhmedEmail author
  • Hafiza Sultana
  • Mohammad Tayeenul Hoque
Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

The case study discusses Islamic banking activities in Bangladesh by focusing on Islami Bank Bangladesh Limited (IBBL), the pioneer in Shari’ah-based banking in the country. Although Islamic banking started with limited resources and a few participants, it has shown strong growth potential with a high level of customer acceptance. The introduction of profit and loss sharing banking system proved its worth since IBBL started rendering banking services with goals for social and economic development in 1983. Therefore, there are significant opportunities for the growth of Islamic banking in the country. Several challenges, on the other hand, are needed to be addressed, for example, inadequate diversification of products, lack of regulatory standard, complexity in investment opportunities, wobbly compliance with the Islamic Shari’ah, and intense competition from conventional banks with Islamic products and service, in order to improve the efficiency of this sector.

Keywords

Bangladesh Islamic banking Shari’ah banking Profit and loss sharing banking Islami Bank Bangladesh Limited 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Jashim Uddin Ahmed
    • 1
    Email author
  • Hafiza Sultana
    • 2
  • Mohammad Tayeenul Hoque
    • 3
  1. 1.Department of ManagementSchool of Business & Economics North South UniversityDhakaBangladesh
  2. 2.InterResearchDhakaBangladesh
  3. 3.Department of Marketing and International BusinessSchool of Business & Economics, North South UniversityDhakaBangladesh

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