Bangladesh pushes for dedicated Islamic banking institute under Dhaka University
Top economists and policymakers urge legal reform, education, and central Shariah oversight to grow Islamic finance in Bangladesh
DHAKA, Bangladesh (MNTV) — Leading Islamic economists and banking officials have called for the creation of a dedicated institution for Islamic banking under the University of Dhaka, in collaboration with Bangladesh Bank and the country’s Islamic financial institutions.
The proposal was raised during a seminar hosted by Bangladesh Bank in Dhaka on Monday, where participants stressed the urgent need for academic infrastructure and policy reforms to strengthen the Islamic financial ecosystem in the country.
The event, organized by the Islamic Banking Regulation and Policy Department (IBRSPD) of Bangladesh Bank, featured two back-to-back seminars titled “Governance Framework on Islamic Banking Division in Bangladesh Bank” and “Islamic Banking Financial Systems in Bangladesh: The Need for Education.”
Professor Mohammad Kabir Hassan, a renowned Islamic economist and Professor of Economics and Finance at the University of New Orleans, USA, delivered the keynote address. He emphasized that Bangladesh must follow the path of countries like Malaysia, where a research-driven approach has played a vital role in advancing Islamic finance.
“Academic research and dedicated legal frameworks are the foundation of Malaysia’s success,” said Prof. Hassan. “Bangladesh needs a comprehensive Islamic finance law, a central Shariah board housed within the central bank, and a dedicated Deputy Governor overseeing Islamic banking operations.”
He further noted that building skilled human resources and resolving bureaucratic hurdles are essential to ensure the industry’s growth and credibility.
Mohammad Abdul Mannan, Chairman of First Security Islami Bank and former Managing Director of Islami Bank Bangladesh, highlighted the significant expansion of Islamic banking in recent years. He stated that Islamic banking now constitutes roughly one-third of the nation’s total banking sector and could grow to 50 percent with proper strategic support.
“To achieve this, we must train our 25,000 Islamic banking professionals and educate our 40 million customers,” Mannan said. “Establishing a specialized academic institute is no longer optional—it’s a necessity.”
Md. Mezbaul Haque, Executive Director of Bangladesh Bank, confirmed the central bank’s commitment to creating an enabling legal environment for Islamic finance and implementing independent policies to support its development.
He also highlighted the importance of academic collaboration and ongoing knowledge-sharing between regulators, academics, and industry stakeholders. “Events like these are crucial for shaping the future of Islamic banking in Bangladesh,” he said.
The seminars were attended by senior officials from Bangladesh Bank, banking executives, scholars from Dhaka University’s Finance, Banking, Arabic, and Islamic Studies departments, and various policymakers.
As Bangladesh moves to modernize and expand its Islamic banking sector, calls for a stronger academic foundation, legal reform, and centralized Shariah oversight reflect the country’s ambition to become a leader in Islamic finance within South Asia.
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