Credit outflow through the Islamic banking system has witnessed a 22.31 percent growth in last year against 18 percent in conventional banking, says a recent study.
The Bangladesh Institute of Bank Management (BIBM) report says deposits in Islamic banks grew by 13 percent while in other commercial banks 10.76 percent.
The findings were revealed on Monday during the BIBM’s annual ‘Review Workshop on Islamic Banking Operations of Banks’.
Islamic banking has expanded in large scale, but shortage of skilled human resources results ineffective operations, BIBM Associate Professor Md Alamgir told the workshop.
Emphasising special certification courses on Islamic banking, he said, “Certificate-holding experienced bankers will get special privileges in promotion and other facilities.”
The central bank has asked banks to open separate cells for Islamic banking system, said Deputy Governor Abu Hena Mohd Razee Hassan before adding “Banks have been told to operate in line with the Shariah principles.”
He said the Bangladesh Bank has made mandatory for banks to form Shariah supervisory committee.
Islamic banking operations are running in Bangladesh without any ‘proper concept’, according to M Azizul Haque, an independent Islamic banking consultant.
Stressing specialised trainings for bankers, he said, “Several countries including Malaysia have significantly advanced in Islamic banking and Bangladesh, too has potentials.”
Addressing the liquidity crisis is much easier in the Islamic banking system rather than in conventional banking system, EXIM Bank CEO Mohmmad Haidar Ali Miah told the BIBM workshop.
Miah focused creating skilled human resources for the banking system.