Joint venture key to expanding Islamic banking in Bangladesh

Speakers at a business session yesterday stressed the need for setting up joint venture Bangladesh-Malaysia financial institutions to encourage and further expand Islamic banking system in Bangladesh.

They called Malaysian financial institutions to invest in Bangladesh by opening branches here and providing Islamic bonds and other investment instruments.

Speakers also underscored the need for encouraging collaboration within Islamic banks, insurance and reinsurance companies and stock exchanges of both countries.

Bangladesh-Malaysia Chamber of Commerce & Industry (BMCCI) organised the session on Islamic Banking and Finance as part of the two-day first Bangladesh Malaysia Business Forum at Sonargaon Hotel in Dhaka yesterday. Finance Secretary Zakir Ahmed Khan attended the session as chief guest.

Chairman of Malaysia South-South Association Tan Sri Azman Hashim, Vice-president of the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) Abul Kashem Haider, Chairman of Islamic Bank Bangladesh Ltd Nazir Ahmed, and Chief Executive Officer of Islamic Insurance Azizul Huq also spoke at the session.

Presiding over the session, Zakir Ahmed said Islamic banking system has been able to create a good demand in Bangladesh.

"Around 70 to 72 percent remittance is coming to the country through Islamic banking channel," he added.

If Bangladeshi and Malaysian companies come up with joint venture projects and introduce new products, it would help expand the market in both the countries, he observed.

In his speech, Tan Sri Azman Hashim said Islamic financial system is doing very well in Bangladesh and Malaysia.

"I don't feel that there is a need for international assistance to take Islamic financial system forward," he observed.

Azizul Huq said there are some similarities between conventional and Islamic banking system.

"It will take time to reduce the influence of conventional banking on the Islamic banking system," he felt.