ZCZC
BSS-29
BIBM-SUKUK-BOND
Speakers for introducing Islamic bond ‘Sukuk’
DHAKA, July 4, 2018 (BSS) – Speakers at a seminar today underscored the
need for introducing the Islamic Shariah compliant investment certificate
popularly known as ‘Sukuk’, like other Muslim majority counties, including
Malaysia and Indonesia as well as non-Muslim majority countries like the
United Kingdom and Singapore.
“I acknowledge that we must work for devising more products to meet demands
of the banking industry. We are thinking about development of ‘Sukuk’ market
in our country,” said Bangladesh Bank (BB) Deputy Governor Abu Hena Mohd
Razee Hassan.
He was speaking as the chief guest at the seminar on “Product
Diversification of Islamic Banks: Prospects and Challenges” at the Bangladesh
Institute of Bank Management (BIBM) auditorium in the city, said a press
release.
BIBM Supernumerary Professor and Former Managing Director of the Pubali
Bank Limited Helal Ahmed Chowdhury, Former Managing Director of the Islami
Bank Bangladesh Limited (IBBL) M Farid Uddin Ahmed and IBBL Managing Director
and Chief Executive Officer M Mahbub-ul-Alam were present at the seminar,
among others.
As a central bank of the country, Razee Hassan said BB plays supportive
role for ensuring sustainability of the financial market.
“In formulating regulations, BB always seriously considers salient feature
of Islamic banking transactions. Moreover, there is a separate Islamic
banking cell under Banking Regulation and Policy Department (BRPD) in BB,” he
added.
From the supervisor point of view, the deputy governor said, there is ample
flexibility in Bangladesh for each and every Islamic bank to diversify their
product lines.
Of the entire banking sector, 22 percent market share of Islamic Bank which
plays a significant role in mobilizing deposits and financing different
sectors of the economy, Helal Uddin said.
Mentioning diversifying product as an important tool for further
developing the Islamic banking, Mahbub-ul-Alam said despite many existing
Islamic banking products, diversifying products can reduce the risk of
lending.
BSS/PR/KUC/SSS/1824 hrs