New bank rules attract Standard Chartered

Lawmakers in Bangladesh are urging the central bank to draft Islamic banking regulations

 Lawmakers in Bangladesh are urging the central bank to draft Islamic banking regulations, spurring Standard Chartered Plc to increase investment in the nation's $10 billion (Dh36.7 billion) Sharia-compliant finance industry.

Bangladesh Bank will consider proposals from parliament's finance committee to issue more Sharia banking licences and start an Islamic money market, Jahangir Alam, a central bank spokesman, said in a November 24 interview from the capital Dhaka. The country's seven Islamic lenders, whose assets are growing at 28 per cent a year, now operate under the Bank Company Act and there is only one outstanding Islamic bond, Alam said.

A low profile and the lack of clear rules has deterred global Islamic banks including Kuala Lumpur-based OCBC Al-Amin Bank Bhd from entering Bangladesh, home to the world's fourth-largest Muslim population. Standard Chartered Saadiq plans to start project and trade financing in Bangladesh next year after offering consumer banking in the nation of 159 million people for the past five years.

"As the regulations become clear and transparent, the market will develop faster," Afaq Khan, the Dubai-based chief executive officer of Standard Chartered Saadiq, the Islamic unit which makes most of its profit in Asia, said recently that separate laws "mean there will be more of a focus from the government in expanding the industry and a standardisation of products," he said.

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Pubali Bank launches Islamic Banking window

Pubali Bank Limited Thursday began Islamic banking in a bid to facilitate and streamline the country's growing Islamic banking business.

Chairman, Board of Directors of Pubali Bank Hafiz Ahmed Mazumder, MP inaugurated its Islamic Banking Window at the Principal Branch in the city. 

Managing Director Helal Ahmed Chowdhury presided over the inauguration function.

Directors of Pubali Bank Limited Monir Uddin Ahmed, Sk. Wahidur Rahman, Monzurur Rahman, Ahmed Shafi Chowdhury, Mohammad Yakub, M. Faizur Rahman, Romana Sharif and Mostafa Shahriar Ahmed also attended the ceremony.

In his speech Hafiz Ahmed Mazumder MP said that Pubali Bank is committed to provide the innovative banking services needs as per requirement of present market trend within fastest possible time. 

He urged all valued clients and other professionals to avail the facility ofIslamic banking services to expand their business.

In his speech Helal Ahmed Chowdhury said that Pubali Bank has been providing quality and prompt services for its customer since 1959 with a promise to keep up its original tradition.

Link: http://www.thefinancialexpress-bd.com/more.php?news_id=93471

Guideline out for Islamic banking

The Bangladesh Bank (BB) yesterday set guidelines for Islamic banking.

Under the guidelines, the board of directors of Islamic banks have now been empowered more, instead of the Shariah Council.

The central bank had been trying to issue the guidelines for years to establish proper control on the Islamic banking system, but it did not take place because of political interests.

The Central Shariah Council is working as the parallel regulator of the central bank for the Islamic banks.

In line with the guidelines, an Islamic bank can form an optional Shariah supervisory committee, but there will be no central council.

Islamic banking was first introduced in Bangladesh in 1983. Now, a total of seven banks operate as full-fledged Islamic banks. Another dozen commercial banks have Islamic banking wings to cater to the growing market.

Link: http://www.thedailystar.net/newDesign/news-details.php?nid=113545