Strong Growth Opportunities for Bangladesh’s Islamic Banking Sector

Bangladesh’s Islamic Banking Industry has witnessed strong growth historically, in line with the sector’s expansion globally.

Since the country’s first Islamic Bank commencing operations in 1983, the sector has grown immensely over the years, to now represents 25 percent of the country’s overall banking industry. The annual growth has been over 20 percent, mainly driven by strong public demand and Central Bank support.

However, there exists potential for further expansion, given the country’s Muslim majority and consistent real economic growth in the past (The real economic growth over the last decade was 6%). There is an opportunity to promote inclusiv...