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Experts have discussed the prospects, challenges and future of Islamic finance, banking and insurance in Bangladesh at a seminar held at Eastern University on Saturday.
Titled “Prospects, Challenges and Future of Islamic Finance, Banking and Insurance in Bangladesh”, the seminar brought together academics, banking professionals and representatives of the insurance sector to discuss the current state of the sector and measures needed for its further development.
Eastern University Vice-Chancellor Prof Dr Farid Ahmed Sobhanie chaired the seminar.
Engineer Khandaker Mesbah Uddin Ahmed, director of Al-Arafah Islami Bank PLC and a member of the Eastern University Board of Trustees, attended as the chief guest.
Dr M Imranul Haque, associate professor in the Department of Economics at the University of Manchester in the UK, spoke as the guest of honour, while Prof Dr Tarek Mohammad Shamsul Arefin of the Department of Economics at Jagannath University delivered the keynote presentation.
University Registrar Dr Abul Bashar Khan, who moderated the seminar, delivered the welcome address. Eastern University Treasurer Prof Md Shamsul Huda and Dean of the Faculty of Business Administration Prof Brig Gen AKM Iqbal Azim also spoke.
Speakers identified the shortage of skilled and trained professionals as one of the major challenges facing Bangladesh’s Islamic banking sector.
They said the number of professionals with formal academic education and specialised training in Islamic banking and finance remains relatively low, making it difficult for financial institutions to recruit adequately skilled and experienced personnel.
The speakers called for greater opportunities for education and research at university level in Islamic banking, Islamic finance, Shariah-based banking and insurance to address the skills gap.
They stressed that Islamic banking is founded on Shariah principles, ethics, honesty and trustworthiness. Therefore, professionals need not only sound banking and financial knowledge but also a thorough understanding of the principles and values underlying the Islamic financial system.
The speakers also emphasised the importance of ensuring proper compliance with and implementation of Shariah principles in Islamic banking operations.
The seminar highlighted the need to develop ethical and responsible human resources for the Islamic banking sector. Speakers said professional competence must be accompanied by personal integrity, ethical conduct and a strong sense of responsibility.
They observed that maintaining an ethical and Shariah-based financial system would be difficult if individuals involved in loan default, drug abuse or other unethical activities were employed in the sector. Developing honest, ethical and responsible professionals should therefore receive equal priority alongside technical skills, they said.
Speakers also stressed that Islamic banking is not exclusively for Muslims. Its services and financial facilities are open to people of all faiths and communities, and non-Muslim customers can also use Islamic banking services.
They called for the ethical and economic benefits of Islamic banking to be communicated more widely so that its potential can reach a broader section of society.
The seminar also underscored the need for skilled human resource development, greater research, proper application of Shariah principles, good governance, technological advancement and stronger cooperation between universities and financial institutions to expand the contribution of Islamic banking and finance to Bangladesh’s economy.
The prospects of Islamic insurance, or takaful, were also discussed.
Speakers said there was scope to introduce new products and services in Islamic finance, banking and insurance in line with Bangladesh’s growing economy and changing financial needs, thereby bringing more people into formal economic activities.
Farid Ahmed Fakir, senior vice-president and branch manager of AB Bank PLC’s Kakrail Islamic Banking Branch; Shah Abul Bashar, vice-president and branch manager of Trust Bank PLC’s Mirpur DOHS Branch; Mohammad Shah Kamal, vice-president and manager of Trust Bank PLC’s Islamic Banking Division; Md Anwar Hossain Sarker, vice-president and head of Group and Health Insurance at Zenith Islami Life Insurance PLC; Abdur Rahman, SEVP (HR) and company secretary of Zenith Islami Life Insurance PLC; Dr Mohammad Mizanur Rahman, associate professor of Economics at Manarat International University; and Mohammad Ferdous Ahmed, executive officer and operations manager of UCB’s Ashulia Branch, among others, took part in the discussions.
Faculty members and students of Eastern University, professionals from the banking and financial sectors and invited guests attended the seminar.
The event was organised by the university’s Centre for Islamic Finance, Banking and Insurance in collaboration with Zenith Islami Life Insurance PLC.