Amid the rapid growth of Islamic banking in Bangladesh, experts and regulators have emphasized the need to strengthen Shariah governance frameworks to ensure transparency, credibility, and sustained public confidence. The call reflects growing concern that as the sector expands, maintaining trust and consistency in Shariah compliance is becoming increasingly critical.
The issue was highlighted during a seminar titled “Shariah Governance in Islamic Banks of Bangladesh: An Evaluation,” held at the Bangladesh Institute of Bank Management (BIBM) in Mirpur. The event brought together policymakers, academics, regulators, and industry practitioners to review the current state of governance and compliance practices in the Islamic banking sector.
Professor Dr. Md Shihab Uddin Khan, Director of BIBM, noted that the continued growth of Islamic banking makes it essential to reinforce governance mechanisms. He stressed that strict adherence to Islamic principles is not just a regulatory requirement but a key factor in maintaining the trust of depositors and investors.
Nurun Nahar, Deputy Governor of Bangladesh Bank and Chairperson of BIBM’s Executive Committee, underlined the importance of strong governance structures in her inaugural address. She said that Shariah compliance must go beyond formal regulations and reflect a genuine commitment to Islamic ethical and financial principles.
Dr. Md Ejazul Islam, Director General of BIBM, provided a broader perspective, explaining that Shariah governance is not limited to technical compliance. It also includes institutional culture, professional competence, depositor protection, transparency, and ethical accountability. He added that the credibility of Islamic banking depends on how effectively these elements are implemented in everyday operations.
Bangladesh’s Islamic banking sector has experienced significant growth in recent years, with many customers choosing Shariah-compliant services for both financial and religious reasons. This dual expectation increases the responsibility on banks to maintain rigorous governance standards and ensure consistency in compliance.
During the seminar, experts highlighted several areas requiring improvement, including regulatory oversight, institutional alignment with Islamic values, depositor protection, and transparency. They also stressed the importance of developing skilled professionals and implementing standardized practices across the industry.
A keynote paper presented by Dr. Md Mahabbat Hossain and his research team offered an in-depth assessment of existing Shariah governance practices. The study identified gaps in uniformity, monitoring systems, and institutional capacity, and recommended reforms to strengthen and standardize governance frameworks across Islamic banks.
Panelists at the event emphasized the need to align local practices with international standards while addressing domestic challenges. They warned that inconsistencies in Shariah interpretation and implementation could undermine the sector’s credibility if not properly managed.
The discussion also highlighted the importance of stronger coordination between regulatory authorities and financial institutions. Participants agreed that a unified and transparent approach to Shariah governance would help reduce risks, improve accountability, and support long-term sector stability.
The seminar concluded with a consensus that the future success of Islamic banking in Bangladesh will depend not only on expansion but also on the strength of its governance systems. Experts agreed that reinforcing Shariah governance is now a strategic necessity to preserve trust and ensure sustainable growth in the industry.