BB chief for Shariah compliance to restore confidence in Islamic Banking

Bangladesh Bank (BB) Governor Md. Mostaqur Rahman on Saturday underscored the need for stronger governance and effective Shariah compliance in the country's Islamic banking sector, saying these are essential 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 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.�" BSS