Bangladesh Bank is introducing a dual banking system to expand customers’ choice between conventional and Shariah-based Islamic banking services according to their religious and financial needs, and to further integrate the country’s financial sector with the international Islamic finance system.
Finance and Planning Minister Amir Khasru Mahmud Chowdhury shared the information in parliament Sunday (Sept. 6), in response to a written question from Syed Zainul Abedin, opposition (Jamaat-e-Islami) lawmaker from Dhaka-4.
The finance minister said Bangladesh Bank has already introduced a dual banking system aimed at expanding customers’ choice between conventional and Shariah-based Islamic banking services according to their religious and financial needs. At the same time, initiatives have been taken to further integrate Bangladesh’s financial sector with the international Islamic finance system.
He said that, as of June 30 this year, full-fledged Islamic banks have been approved for a total of 1,699 branches, including 1,074 in urban areas and 625 in rural areas.
Among these branches, Islami Bank Bangladesh PLC has 400, Al-Arafah Islami Bank PLC has 226, Shahjalal Islami Bank PLC has 141, Standard Islami Bank PLC has 138, and Sammilito Islami Bank PLC has 761.
Of Sammilito Islami Bank PLC’s 761 branches, First Security Islami Bank PLC has 206, Social Islami Bank PLC has 181, Exim Bank PLC has 155, Union Islami Bank PLC has 114, and Global Islami Bank PLC has 105 branches. ICB Islamic Bank’s 33 branches are also included.
The finance minister further said Islamic banking activities are currently being conducted through a total of 75 Islamic banking branches and 1,102 Islamic banking windows at 35 conventional banks. In addition, two more conventional banks have been approved to conduct Islamic banking operations.
He said efforts to further expand the scope of the dual banking system have continued since the current government took office.