Bangladesh Bank (BB) Governor Md Mostaqur Rahman has assured members of Shariah boards full independence from the central bank to ensure proper governance and oversight in the country’s Islamic banking sector.
The pledge came during a high-level discussion on 30 March 2026, titled “Current Status, Challenges, and Future Actions of Islamic Banking,” held at the BB headquarters, where Governor Mostaqur Rahman met with leading Shariah scholars and executives from Islamic banks, according to a BB press release issued on Tuesday.
Addressing persistent challenges, the governor highlighted gaps in supervision that have previously allowed financial misconduct and money laundering in certain Islamic banks.
While Islamic banking is designed to be asset-backed and compliant with Shariah principles, he acknowledged that practical discrepancies have occasionally undermined its integrity.
To address these issues, Mostaqur Rahman stressed that Shariah boards must be fully empowered and their directives treated as the highest authority within institutions. This, he said, is essential for restoring effective oversight and public confidence.
The meeting also outlined a vision to position Bangladesh as a global hub for Islamic finance. Proposals included establishing a comprehensive Shariah research centre and library under BB’s initiative, hosting international conferences with renowned scholars, and gradually converting conventional banks into Islamic-compliant institutions, drawing inspiration from Malaysia and Pakistan.
Scholars in attendance called for annual external Shariah audits and the introduction of a “Shariah Compliance Rating” for all Islamic banks to ensure transparency and accountability.
They also urged strict criminal penalties for money laundering and major financial fraud, equating them with acts of treason.
In his closing remarks, Governor Mostaqur Rahman emphasised that banking institutions must operate free from political influence, likening their public service role to that of hospitals.
He reaffirmed that the central bank would provide full support and protection to Shariah scholars, allowing them to perform their duties without fear or external pressure.
Senior officials from BB, along with prominent scholars such as Professor Dr Abu Bakar Rafiq and Mufti Shahid Rahmani, and representatives from Islami Bank Bangladesh and Al-Arafah Islami Bank, participated in the meeting.
