Islami Bank is not operating in Islamic way: Ibrahim Khaled
Staff Correspondent, bdnews24.com
Published: 10 Mar 2017 01:06 AM BdST Updated: 10 Mar 2017 01:06 AM BdST
Islami Bank Bangladesh Limited speaks about Islamic banking, but it does not act in that way, former Bangladesh Bank deputy governor Khondkar Ibrahim Khaled has said.
In his view, the private bank is not following Islamic banking rules of keeping customers as partners of profit or loss.
He also alleges that remittances are dropping due to 'dishonest' mobile banking abroad.
Pointing to Abu Hena Mohd Razee Hassan, a deputy governor of the central bank, at a seminar in Dhaka on Thursday, Ibrahim Khaled said the 'tough work' to bring about changes in the activities of the Islami Bank was under way.
"He (Abu Hena) is also on the board. I'll tell you one thing. They have a very tough job in hand," he said.
Ibrahim Khaled, who is also the chair professor of Bangladesh Institute of Bank Management (BIBM), added that it would be 'possible to save' the bank if the job of bringing about changes in its operations were finished with patience.
"Though the Islami Bank claims to operate Islamic banking, it actually doesn't do so. They term it Musharaka and Mudaraba, but it's not that. It's not Islamic banking.
"What they are doing is actually alternative banking. They are not doing Islamic banking," he said.
Ibrahim Khaled said the customers will get share of profit or loss in Islamic banking. "But now they are not getting the share of profit. You (Islami Bank) are giving half from the 50 percent profit or some other thing happens."
He also alleged that there were 'dishonest acts' abroad over mobile banking.
"Remittances are dropping because money is being sent through illegal channels in the name of bKash from the Middle-East, including the United Arab Emirates," he said.
He said he noted in Singapore during a recent visit that thousands of dollars were being remitted through a shop bearing the signboard 'Mostafa Centre' there.
He advised the Bangladesh Bank to open a new wing to research mobile banking in order to stop transactions outside banking channels.
In a research paper published at the seminar, it was said that a large section of the customers of Bangladesh's banks did not have clear ideas about the sector.
According to the paper, 98 percent of customers have no idea about insurance and 47 percent about financial statements. But 52 percent depositors think it will be very risky if the banks’ financial condition worsens.
BIBM Director General Toufic Ahmad Choudhury chaired the seminar. Its chair professor SA Chowdhury was also present.
-
Myanmar c.bank orders state bodies not to use foreign currencies
-
Asia's war on inflation targets supply, not consumers
-
UN's grain-for-fertiliser plan holds little appeal for Moscow
-
Analyst warns of risks in changing remittance policy
-
Food crisis fuels fears of protectionism
-
EU calls for Russia dialogue to unlock Ukraine food exports
-
Govt risks missing wheat collection target
-
Economic storm looming, leaders warn in Davos
-
Russian central bank slashes key rate, sees room to cut further
-
Myanmar c.bank orders state bodies not to use foreign currencies
-
Asia's war on inflation targets supply, not consumers
-
UN's grain-for-fertiliser plan holds little appeal for Moscow
-
India's retirees tap savings, eat less as living costs soar
-
Remittances rise, but analyst sees risks in policy change
Most Read
- Texas gunman warned online of attack minutes before rampage that killed 19 children
- Slain naval engineer Hadisur’s family to get $500,000 in compensation
- Drunkenness, vomiting and a scuffle at UK government lockdown parties
- Square Pharma says factory fire will wipe Tk 80m off profits
- High Court denies 4 North South University trustees anticipatory bail, turns them over to police
- After five days of unconsciousness, RMG worker says she jumped off moving bus to escape ‘rape’
- ‘Worried’ over funding, UNHCR chief Grandi urges focus on Rohingya amid Ukraine war
- Court jails former Sonali Bank MD Humayun Kabir, 8 others for loan scams
- Bangladesh names its longest bridge after Padma River as it opens on Jun 25
- CVF emerged as legitimate voice under Bangladesh’s leadership: Hasina