Eastern University organises discussion on islamic finance and banking

A roundtable discussion titled "Islamic finance, banking and insurance in Bangladesh" was held in Dhanmondi, Dhaka, organised by Eastern University.

Leading bankers, Shariah scholars and academics from across the country participated in the discussion.

The programme was chaired by Vice Chancellor of Eastern University Professor Dr Farid Ahmed Sobhani, while Chairman of United Commercial Bank and former secretary Dr Mohammad Ayub Mia attended as the chief guest. The session was moderated by the university's Registrar Dr Abul Bashar Khan, and overall supervision of the programme was provided by Director of the Department of Islamic Finance, Banking and Insurance Dr Farhana Khan.

Speakers at the event welcomed Eastern University's initiative to introduce BBA and MBA programmes in Islamic Finance, Banking and Insurance for the first time in Bangladesh. They said the programmes would play a significant role in developing skilled professionals for the sector and would help build a strong bridge between academia and the Islamic banking industry.

In his address, Dr Mohammad Ayub Mia emphasised that Shariah boards in Islamic finance and banking must be fully independent and free from external influence. He said Shariah boards should function not merely as advisory bodies but in a supervisory role, with their decisions taking precedence over those of boards of directors. He also stressed the need for regular and effective Shariah audits in Islamic banks and urged those involved to perform their duties with sincerity and accountability.

He further said that advancing the Islamic economy requires building strong institutions rather than limiting efforts to sermons or speeches. Highlighting zakat management, he said institutionalising the zakat system and ensuring its proper utilisation could contribute significantly to poverty alleviation and social security. He advised educational institutions like Eastern University to strengthen collaboration with banks and financial institutions and place greater emphasis on research and development.

Expressing concern, Dr Ayub Mia noted that despite being a powerful economic tool, zakat is not being effectively utilised in national revenue or social safety programmes due to a lack of political commitment. He called for expanding the reach of Islamic banking to the grassroots as an alternative to interest-based and microcredit practices, and stressed the importance of equipping Islamic scholars with economic knowledge to help drive social change.

Among others, speakers included Professor Dr Chayedur Rahman, Dean of the Faculty of Business Administration at Eastern University; Md Mezbah Uddin, former director of Bangladesh Bank; Farid Ahmed Fakir, Vice President of AB Bank; Muhammad Munirul Haque, Head of Shariah Secretariat at EBL Islamic Banking; Md Azad Rahman, AVP and Deputy Head of Bank Asia Islamic Banking Division; Md Chayed Junaed, Assistant Vice President of First Security Islami Bank PLC; Md Raja Mia, Executive Vice President and Head of Division of Islami Bank Bangladesh PLC; Mufti Saiful Islam of Islamic TV; and Professor Dr Muhammad Sohrab Uddin, former deputy governor of Bangladesh Bank, among many others.

Participants at the roundtable exchanged views on the current state, prospects, policy challenges and future development strategies of Bangladesh's Islamic finance, banking and insurance sectors. They emphasised the need for stronger academia–industry collaboration, research-based academic programmes and the development of skilled human resources.