Abstract:
Banking plays an important role in the economy of any country. In Bangladesh Muslim
holds the majority of the population. Though, no Islamic banking but only traditional
banking system was developed here till 1983. However, interest is absolutely prohibited
in Islam. The main aim of traditional banking is to earn profit by borrowing and lending
money in exchange of interest. As a result there is an unfair competition among the
bankers and among the customers. The people of this country are profoundly committed
to Islamic way of life as enshrined in the holy Qur’an and the Sunnah. Naturally, it
remains deep in their hearts to fashion and design their economic lives in accordance with
the precepts of Islam.
The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true
reflection of this inner urge of its people, which started functioning with erect from
March 30, 1983. Now, a question may arise- “what is Islami Banking?” According to
OIC- “Islamic bank is a financial institution whose status, rules and procedures expressly
state its commitment to the principle of Islamic Shariah and to the banning of the receipt
and payment of interest on any of its operations.”
