Islamic wings of conventional banks have become the preferred choice for religiously inclined depositors as many full-fledged Shariah-based banks struggle with a crisis of trust..This shift has emerged after controversies and financial scandals involving Shariah-based banks, many of which

Rabiul Islam, a practising Muslim who works at a private organisation, refrained from conventional banking services for many years as both paying and receiving interest are against his religious principles.

Nearly half of the total remittances in December last year came to Bangladesh through Islamic banking channels, according to the Bangladesh Bank.

Liquidity in Shariah-based banks in Bangladesh remains tight due to a dip in deposit collection and the banks’ inability to make the most of the central bank support to overcome the situation, Moody’s Investors Service said in a report.

The Islamic banking sector in Bangladesh continues to face liquidity challenges because of weak governance and regulatory quality, Fitch Ratings said.

Islamic banking has garnered people’s attention with robust growth over the last decade as a large number of people in Bangladesh prefer the Shariah-based banking system for their financial transactions.

In the pursuit of providing modern technology and Islamic Shariah-based banking services to the masses in Bangladesh,

Islamic banking is set to grow from the current level in Bangladesh, which will offer a huge opportunity to banks and financial institutions and accelerate financial inclusion, said Sabbir Ahmed, head of retail banking of Standard Chartered Bangladesh.