Concept of Islamic Bank :
Under the company act, 1913 Islamic Bank of Bangladesh Limited got registration on the 13th. March, 1983 in Bangladesh. Having received
approval of functioning with effect from the 27th. March 1983 it started its business on the very next day confronting with the above company
act.
Structural design and operational policy of the bank were contrived on the basis of definition of Islamic Bank prescribed by the Secretariats
of the Organization of Islamic Conference (OIC).
However the bank may be categorized as a
Under the company act, 1913 Islamic Bank of Bangladesh Limited got registration on the 13th. March, 1983 in Bangladesh. Having received
approval of functioning with effect from the 27th. March 1983 it started its business on the very next day confronting with the above company
act.
Structural design and operational policy of the bank were contrived on the basis of definition of Islamic Bank prescribed by the Secretariats
of the Organization of Islamic Conference (OIC).
However the bank may be categorized as a
Commercial bank in the private sector and as per company act it is indeed a private limited company. Establishment of such bank introduced
a new mode of banking in the existing banking practices of the country. Islam, Bank pledges to establish Islamic norms and values first by extending co-operation in earning "halal" income and making "halal" investment in the banking sector. Income which comes from investment by way of imposing certain rate of interest thereon entirely over-sighting the rick of sustaining loss out of such investment is considered as harm or strictly prohibited in the religion of Islam. The term "hala" bears wide connotation; as such, discussion thereof in details has not be done here. However it can be said in a nut shekel that "Halal income" includes only the legal income refortified by the Islamic laws as laid down in the Al-Quran, and Hadit. Infact,no investment can certainly claim generation of profit. Invariably there remains the rick of sustaining loss from such investment. Therefore we can say that it is inhuman to impose such rate of interest on any loan or to allow interest on any deposit of the clients. such malpractices sharpens the social inequality in the country. It is an way of exploitation to others. Islamic Bank envisages replacement of the concept of interest" by another concept of "sharing of profit and loss" in their normal banking practices. Characteristics & objectives of the Bank :(1) Bank performs its functions in accordance with |
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the principles of shariah.
(2) People or its clefts are inspired toward acceptance of Islamic values. (3) Profit earned or loss sustained by the bank and or entrepreneur are shared proportionately by them. (4) Policies of the bank are designed by the renowned and outstanding personalities in the discipline of Islam. Ultimate goal of the bank is to establish a real islamic society in the country. At the outset, initiative was taken by some religious industrialist traders and institutions having from inclination towards Islamic Values to establish "Islamic Bank of Bangladesh Limited" in Bangladesh. Islamic Development Bank (ID) and alike other banks of the middle-East countries came forward to assist the bank of this country. Upto December, 1989 a number of 40 branches of Islami Bank Bangladesh Limited were in operation in this country. Authorized capital and paid up capital of the bank were 50 (fifty) crore and 7.95 crore respectively. |
Management :
Policies of the bank are designed and controlled by a Board of Directors. A high powered committee titled as "general
executive and administrative assist the above board. The committee is formed by six members each of whom are selected
from the members of the Board of Directors.
Apart from the above there is a council of shariah which ensures confrontation of banking activities with the Islamic Laws
or the principles of shariah. The above council comprises Islamic thinkers, renowed scholars,
Policies of the bank are designed and controlled by a Board of Directors. A high powered committee titled as "general
executive and administrative assist the above board. The committee is formed by six members each of whom are selected
from the members of the Board of Directors.
Apart from the above there is a council of shariah which ensures confrontation of banking activities with the Islamic Laws
or the principles of shariah. The above council comprises Islamic thinkers, renowed scholars,