Islamic Banking has become a part of mainstream banking in Bangladesh . In view of some basic differences in Shariah based Islamic Banking and interest based banking it has become necessary to introduce guidelines which would bring greater transparency and accountability and therefore governance to the Islamic Banking. To this end, Bangladesh Bank has taken the step of introducing this guidelines for Shariah based Islamic Banking. The guidelines are issued in persuance of Section 45 of Banking Company Act, 1991 (Amended in 2003).
This guidelines should be treated as supplementary, not substitute, to the existing banking laws, rules and regulations. Any point not covered under this guidelines and in case of any contradiction, the rules under the Banking Companies Act, 1991 and Companies Act, 1994 will prevail.
The concerned banks are, therefore, advised to comply with the guidelines by 31st December, 2009 and submit a compliance report to the effect that the guidelines have been put in practice, to this department of Bangladesh Bank by 31st January, 2010. Bangladesh Bank will monitor the progress of compliance of these guidelines through its on site inspection teams during inspection.
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