IslamicFinance.de

Islamic banking is a system of banking that avoids receipt and payment of interest in its transactions and conducts its operations in accordance with Shariah principles to achieve the objectives of Islamic economy. Growth of Islamic banking over the last decade in general and after the recent global financial crisis in particular has been tremendous.
Besides growth, there have been some dimensional developments in the field of Islamic banking in Bangladesh. Apart from first generation established Islamic banks, which have been operating under Islamic Shariah, most of the leading conventional banks have opened Islamic banking windows to deliver service according to Shariah principles. This trend indicates that Islamic banking will keep flourishing and increase its share in the banking industry of the country. In spite of the vigorous growth, many bankers are yet to be familiar with the process by which Islamic banking can be conducted side by side the conventional system.
Owing to absence of Islamic Inter-Bank Money Market, Islamic banks in conventional systems have, for years, operated with no access to tradable short-term treasury instruments through which excess funds can be channelled to other Islamic banks.