Banking Scenario in Bangladesh

An Islamic financial institution such as financial banking has been established before two or three decades ago in the aim to provide satisfactory financial facilities to the interested parties as compared to conventional banks. In 1974 Dubai Islamic bank which is the first Islamic commercial bank was established and later Islamic Development Bank (IDB) has been established in 1975 (Hennie and Iqbal, 2008).

Political environment plays vital role in the progress of banking organizations. Pakistan despite all international and public thinking’s is a functioning democracy and gradually change in complexion and composition of legislatures with more educated people and women entering into politics. These talented politicians’ helps in designing best strategies to implement that could support the revival of bank industry. Political stability brings foreign investment and deposits in banks when people finds jobs. Some political decisions

Islamic Banking is quite similar to a conventional bank. Only here the essential feature is that it is Interest Free i.e. it purely follows the Islamic law – Sharia’h (Rules) and guided by the Islamic Economics that forbids the both the payment and the receipt of Riba (Interest). The two main principles are basically Banks will share the Profit & Loss (enabling risk sharing) and disallow Interest in any form.

1. Conclusions : Mercantile Bank Limited is one of the pioneer banks of Bangladesh banks in respect of customer service, profitability and strength among the private commercial banks;. According to my research and study on the bank I think the bank has achieved a good level of success by having 93 branches around the whole Bangladesh. Mercantile Bank Limited has also set up a new standard in financing in the industrial, trade and foreign Exchange Business. Different retail banking products of Mercantile Bank Limited also gets the attention of the customers.

Credit risk has been the subject of considerable research interest in Banking and Financial communities, and has recently drawn the attention of statistical researchers. The exposure to credit risk continues to be the leading source of problems in the banking industry and as a result needs to be managed. Credit risk is identified as a core pillar for the viability of banks and credit institutions (Michael et al., 2011)

The financial sector in some Sub Saharan Africa countries has been growing rapidly in the past two decades. New products have been introduced and financial institutions are playing an tremendous role in financial intermediation, including cross-border financial flows. However, Islamic finance in Sub Saharan Africa remains small, although it has potential given the region’s demographic structure and potential for financial expanding. As of end-2012, about 38 Islamic finance institutions comprising commercial banks, investment banks, and takeful1 (insurance) operators were operating in Africa (Dow Jones, 2012). As estimates based on Bank scope and Zawya, April 18, 2012 out of

Like anything new introduced, has the problem of facing the first bluster. What BRAC Bank is trying to do is completely a new idea in the sector of banking in Bangladesh. So they are expected to face some difficulties and thus i have tried to give some recommendations.

Some studies such as [30], [31], [32], Focused on risk management and Islamic banks in the countries of Middle East. Study [32] was conducted on 421 countries Bank Middle and Far East. found that Islamic banks are less vulnerable and more stable and able to cope with the financial crisis compared to conventional banks. The study [30] sees that the most important risks to Islamic banks in the Middle East is the liquidity risk, followed by credit risk, as well as other risks the

Besides that, Islamic Banking is growing at a rate of 10-15% per year in this modern era with the signs of consistent future growth. Islamic banks have more than 300 institutions spread over 51 countries, including the United States

The management of the private commercial banks and nationalized commercial banks might allocate a part of their yearly profit for ICT penetration in banking activities and human resources development. They may also extend those services to the rural people of Bangladesh so that the rural people can also get the benefit of technology driven banking.

Results indicate that conventional banks perform better in profitability, while Islamic banks perform better in liquidity and credit risk. In t-test of the return on asset (ROA) and total equity to net loans, there are no major difference between Islamic banks and non-Islamic banks. In the return on equity and common equity to total assets, there are statistically significant differences in these two groups. The statistically significant difference was shown in the area of liquidity which means that the Islamic banks liquidity performance has major difference with the non-Islamic banks.

Company Profile |Products |Sell Offers |Buy Offers |Contact Details | |Askari Bank, one of the leading banks of Pakistan. The bank was founded in 1992, and in the 18 years since, our growth and success patterns have far outgrown industry standards. Askari Bank has expanded into a nationwide presence of 150 branches, and an offshore banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all major cities in Pakistan supports the delivery channels for customer service. As on December 31, 2007, the bank had equity of PKR 12.27 billion and total assets of PKR 182.17 billion, with over 800,000 banking customers, serviced by 6,808 employees. We have reinforced our products with new deposit schemes bearing competitive rates

Research finding: Shariah compliance, Quality and Attractiveness of Offerings, Friendliness of bank personnel, Cost and benefit analysis and Awareness about Islamic banking.

The Islamic finance industry continues to grow following continued internationalisation efforts. Last year’s growth was an impressive 16.5%, accounting for 25.7% of total assets in the banking system. The foreign currency business also grew with assets amounting to RM 18.1 billion in 2013.

Sejak awal kelahirannya bank syariah dilandasi dengan kehadiran dua gerakan renaissance Islam Modern: neorevivalis dan modernis, tujuan utama dari pendirian lembaga keuangan berlandaskan etika ini, tiada lain sebagai upaya kaum muslimin untuk mendasari segenap aspek kehidupan ekonominya berlandaskan Al-Qur’an dan As-Sunnah. Upaya awal penerapan sistem profit dan loss sharing tercatat di Pakistan dan Malaysia sekitar tahun 1940-an, yaitu adanya upaya mengelola dana jamaah haji secara non-konvensional. Rintisan institusional lainnya adalah Islamic Rural Bank di desa Mit Ghamr pada tahun 1963 di Kairo, Mesir.