the Bangladesh Bank is working on drafting an Islamic Banking Law to align the sector with global best practices. According to the Governor, adhering strictly to the principles of Islamic banking will benefit depositors, investors, and shareholders alike. He emphasized that good auditing can ensure strong Islamic finance, and his expectation is that Bangladesh’s Islamic banking sector will grow in a planned, well-governed, and sustainable manner.

Alongside this optimism, he also highlighted the central bank’s firm stance on tackling the current challenges in the banking sector. The Governor clearly stated that there was no other option but to merge five financially weak Shariah-based banks. The primary reason for initiating this merger process for banks suffering from liquidity crises is to protect the interests of the depositors. For the success of this reform process, he expressed his expectation to the banks’ boards of directors, stating that the board members must be responsible and representative. He further mentioned that transparency is most essential to strengthen and dynamize the banking sector, and moving forward is not possible without the active participation of investors, depositors, and officials.