Dhaka: Bangladesh Bank (BB) Governor Ahsan H Mansur today highlighted the crucial role of robust accounting, governance, and auditing practices in ensuring the future growth and stability of Bangladesh's Islamic banking sector. 'Adherence to high auditing standards is crucial for maintaining transparency and accountability in both conventional and Islamic banking institutions. We need good accounting, governance, and auditing for Islamic finance in Bangladesh,' he stated during the inaugural session of the 'Bangladesh Islamic Finance Summit 2025' held at a city hotel.
According to Bangladesh Sangbad Sangstha, the governor emphasized the central bank's ongoing efforts to develop an Islamic banking law aligned with global best practices. He acknowledged the recent turbulent period experienced by the Islamic banking sector but affirmed its structural strength and market performance. "Globally, Islamic finance is doing well. In Bangladesh, we could have been in a much better position if not for the turbulent period. Still, we have trust in the sector, and depositors are slowly rebuilding their confidence," he remarked.
Ahsan confirmed that the central bank is actively working to reconstitute and restructure troubled Islamic banks, with some positive outcomes already apparent. On Islami Bank Bangladesh Limited (IBBL), the nation's largest private Islamic bank, the governor acknowledged the bank's operational success and extensive client base, yet he raised concerns over persistent irregularities. He cited a significant breach involving approximately Tk50,000 crore reportedly taken from IBBL by a single family, placing a considerable strain on the bank's resources.
Despite these challenges, the governor noted sustained public trust in IBBL and identified signs of recovery, including overcoming severe liquidity shortages and achieving the highest deposit growth in the Islamic banking sector this year. Ahsan confirmed the central bank's initiative to merge banks facing liquidity stress to protect depositors, stating, "We want Islamic banks with strong balance sheets, high paid-up capital, and good governance."
He emphasized the need for responsible and representative board members and expressed optimism for the sector's future trajectory. "We want to see Islamic banking in Bangladesh grow in a systematic, well-governed, and sustainable way," he concluded.