Islamic Banking in Bangladesh

Topics: Bank, Commercial bank, Retail banking Pages: 8 (2207 words) Published: November 30, 2012

Islamic Banking in Bangladesh

There are currently seven commercial banks operating under Islamic principles. They are:

1. Islami Bank Bangladesh Limited,
2. Al-Arafah Bank Ltd.
3. Social Investment Bank Ltd,
4. Exim Bank Ltd,
5. Shahjalal Islami Bank Ltd.
6. Icb Islamic Bank Ltd
7. First security Islami Bank Ltd.

First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank on 22 September 1999 to commence its business. The Bank carries banking activities through its Fifty Three (53) branches in the country. The commercial banking activities of the bank encompass a wide range of services including accepting deposits,making loans, discounting bills, conducting money transfer and foreign exchange transactions,and performing other related services such as safe keeping, collections and issuing guarantees,acceptances and letter of credit.At the beginning, FSIBL started their business with traditional commercial banking services.However, from 2008 they converted their business to Islamic Banking with Islamic Shariah Act.The FSIBL has played a pioneering role in shaping the future of the Banking industry inBangladesh since its inception. The Bank started in 1999 with 14 branches and now it has 53 branches in Bangladesh and recently the bank introduce an Exchange House in Canada.The Bank also maintains a comprehensive correspondent relationship with top ranking banks.FSIBL has already started their on-line, SMS and ATM banking facilities for their clients. 2.2 Vision of the Bank 

“Wherever you are, you can Bank with us” 
is the motto of First Security Islami Bank. FSIBL is prepared to meet the challenge of the 21st century well ahead of time. To cope with the challengeof the new millennium it hired experienced and well-reputed banker of the country from theinception. The bank has efficient and dedicated professional and equipped with modemtechnology to provide the best service in the need of the people and thus to realize its vision. Sothe Bank defamed its Vision: ‘to be the most efficient Islamic Bank in terms of customer service profitability and technology application’

To develop & deliver the most innovative products, manage customer experience, deliver qualityservices that contributes to brand strength, establishes a competitive advantage and enhances profitability, thus providing value to the stakeholders of the bank  2.4 Goal of the bank 

To exceed customer expectations through innovative Islamic financial products & services andestablish a strong presence to recognize shareholder’s expectation and optimize their rewardsthrough dedicated work force. 2.5 Special Features of FSIBL

All activities of FSIBL are conducted under a profit/loss based system according toIslamic Shariah to get the nation rid of Usury. •
Its investment policies under different modes are fully Shariah compliant and wellmonitored by the board of Shariah Council. •
FSIBL has included online banking in its wide range of services. Bangladeshisoftware has been introduced in this feature to promote the local developers. •
FSIBL regularly arranges its AGMs (Annual General Meeting). Whenever neededEGMs (Extraordinary General Meeting) are also arranged. •
They believe in providing dedicated services to the clients imbued with Islamic spiritof brotherhood, peace and fraternity. •
The bank is committed towards establishing a welfare-oriented banking system tomeet the needs of low income and underprivileged class of people. •
The Bank upholds the Islamic values of establishment of a justified economic systemthrough social emancipation and equitable distribution of wealth. •...

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