Bangladesh Bank should allow more commercial banks to open Islamic banking branches, considering the success of such banking, and to provide better services to customers, said the chief of an influential chamber.

Mahbubur Rahman, president of International Chamber of Commerce Bangladesh, yesterday said Islamic banking in Bangladesh continues to show strong growth since its inception in 1983. At present, of 48 banks, only seven private commercial banks are operating as full-fledged Islamic banks.

Rahman spoke at the opening of a daylong workshop organised by the chamber on Islamic trade finance in Dhaka.

Besides, only 21 branches of 10 conventional banks, including two foreign banks, are engaged in Islamic banking in the country, he added.

Rahman mentioned that the current global financial crisis has accentuated the urgent need to embark on one of the most radical reshape of the international financial system.

The attitudes and the approaches articulated by the advocates and the opponents of both schools of thought (government intervention and free market economy) have so far failed to deliver a viable long-term solution to the crisis or to prescribe a practical mechanism on how to deal with its consequences and implications, the ICCB chief said in a statement.

“Islamic banking has become very popular, particularly in the Muslim countries as it offers an excellent alternative to the customers.”

The principles of Islamic finance advocate fairness in payoffs and reward structures and embrace socio-economic justice amongst all. The rules of Shariah unconditionally prohibit Muslims from taking part in any transaction that might involve fraudulence, dishonesty, exploitation and ambiguity.

Therefore, it would be fair and sensible to claim that each and every financial activity that complies with the Shariah rules and guidelines is a socially responsible activity, said the ICCB chief.

Mamun Rashid, chairman of ICC Bangladeshs standing committee on banking, technique and practices; M Azizul Huq, chairman of Shariah supervisory board of City Bank, Dhaka Bank and Pubali Bank, and Ataur Rahman, ICCB secretary general, also spoke. Some 77 participants from different banks attended the workshop.