FROM PAGE B1

During the process, the BB said the shareholders of the five lenders would receive nothing because the net asset value of those banks was already negative.

On fund injection, Mansur said Islamic banking had been the biggest casualty of plundering in the banking system over the past 15 years. The government, therefore, had to step in to protect the lenders.

He said that if governance improves, depositors will respond positively and stay with the bank, just as depositors of Islami Bank Bangladesh have done. “Let it grow.”

The governor said Islamic banking in Bangladesh had been substantially damaged, although it remained resilient and would prove that resilience in the coming years.

He urged the sector to follow global best practices and maintain transparency to help Islamic finance contribute to economic growth and social justice.

He said the sector needs to think beyond crore banking businesses alone and include Islamic insurance, non-bank Islamic financing and digital banking in its vision for the future.

At the event, Mesbaul Asif Siddiqui, deputy managing director of City Bank, said sharia banking is an interest-free, value-based system and any compromise in these principles could cause serious harm.

He said the 1980s saw the rise of Islamic banking in Bangladesh, while recent years had seen a decline. The main cause was what he said, “a compromise of values”

Siddiqui said global Islamic finance assets stand at $4 trillion across 80 countries. Sukuk, capital markets and asset management are key pillars of the industry.

In Bangladesh, he said, bond and capital markets remain small and underdeveloped.