THE SIGNIFICANCE OF ISLAMIC FINANCE AND BANKING FOR THE SOCIO- ECONOMIC DEVELOPMENT IN BANGLADESH

Abstract

Bangladesh has witnessed rapid growth in Islamic banking and finance, as well as the rapid development of Islamic banking and finance in the global banking and finance sector. In Bangladesh, Islamic banking and finance has great potential, but there are several challenges, such as lack of Islamic banking and finance infrastructure, lack of concrete legal foundation, lack of central bank attention, lack of Islamic capital market, lack of shariah legal experts and lack of public awareness. The study also found that research trends in Islamic banking and finance are still weak and need to be improved. This study aims to examine the Islamic finance and banking sector and how it can play a role in the socio-economic development of Bangladesh. The objective of this study is to assess the current status, potential, challenges and identify the best methods that can be adapted to develop and further strengthen the Islamic economy in Bangladesh. To achieve the objectives of the study, extensive literature review methods have been used through secondary data such as articles, journals, books, periodicals, newspaper articles, and websites of Bangladesh central banks and other commercial banks. In light of the findings, a strong legal structure overseen by a central shariah body should be put into place. The long-term growth of Islamic banking and finance in Bangladesh necessitates it.