Bankers urged to remain cautious about financing

Posted by BankInfo on Tue, Sep 24 2013 10:29 am

Bangladesh Bank governor Dr. Atiur Rahman called upon the country’s banking sector to remain cautious in financing different stakeholders as reckless steps in financing would promote terrorism and militancy.

He also made a caution against the Islamic Banks to remain watchful in this connection.

“Islamic Banking service is becoming popular in the country. But the bank authorities should remain alert in financing different stakeholders so that terrorism and militancy would not get any financial promotion”.

Dr. Atiur came up with the caution at the inauguration of a four-day seminars and workshops held at a hotel in the capital on Monday.

Bangladesh Bank (BB) with support from the International Financial Services Board (IFSB) of Kuala Lumpur, Malaysia arranged the programme.

IFSB Secretary General Jaseem Ahmed and BB Deputy Governor SK Sur Chowdhury also addressed the inaugural session of the international seminars and workshops.

BB chief said that Islamic banks and financial institutions in Bangladesh are performing better than conventional ones in the country.

Giving a brief account on Islamic banking in Bangladesh, the governor said Islamic finance was incepted here in early 1980s with one Islamic commercial bank while there are eight Islamic banks is running wholly on Shariah principles now in the country.

He said that Islamic economy in the country has been stepping forward rapidly. Along with eight Islamic banks, some 17 banks are conducting operations in mixed system, he said adding that the amount of the capital of the banks are 20 percent of the total amount of the banking sector.

He opined that there is alternative to expedite the country’s Islamic Banking sector to cope with the pace of the banking sector of Middle East and South Asia. Bangladesh Bank will take due steps in this connection, he informed.

Mentionable, there are seminars and workshops in 13 sessions during the four days of the programme. The topic for five seminars on September 24 and 25 will be the prospects and challenges in the development of Islamic finance for Bangladesh.

The last two days will have a workshop in the ninth session on “Facilitating the implementation of the IFSB Standards.

News:Daily Sun Bangladesh/24-Sep-2013
Posted in News, Banking