Bangladesh Bank has introduced a dual banking system to expand customers’ access to both conventional and Shariah-based Islamic banking services according to their religious preferences and financial needs. The initiative also aims to strengthen the country’s financial sector’s integration with the global Islamic finance system.

Finance and Planning Minister Amir Khosru Mahmud Chowdhury disclosed the information today in a written response to a question from Syed Zainul Abedin, an opposition Jamaat-e-Islami lawmaker from Dhaka-4, in Parliament.

The minister said Bangladesh Bank has already introduced the dual banking system with the objective of expanding customers’ options to choose between conventional and Shariah-based Islamic banking services. At the same time, steps have been taken to further connect Bangladesh’s financial sector with the international Islamic finance system.

According to him, as of June 30 this year, a total of 1,699 branches had been approved for full-fledged Islamic banks. Of these, 1,074 branches are located in urban areas and 625 in rural areas.

Among the approved branches, Islami Bank Bangladesh PLC has 400, Al-Arafah Islami Bank PLC 226, Shahjalal Islami Bank PLC 141, Standard Islami Bank PLC 138 and Sammilito Islami Bank PLC 761 branches.

Of Sammilito Islami Bank PLC’s 761 branches, 206 belong to First Security Islami Bank PLC, 181 to Social Islami Bank PLC, 155 to EXIM Bank PLC, 114 to Union Islami Bank PLC and 105 to Global Islami Bank PLC. In addition, 33 branches of ICB Islamic Bank are also under the arrangement.

The finance minister further said Islamic banking operations are currently being conducted through 75 Islamic banking branches and 1,102 Islamic banking windows across 35 conventional banks. Another two conventional banks have also been granted permission to operate Islamic banking services.

He said efforts to further expand the scope of the dual banking system have continued since the current government assumed office.