Bangladesh got enough experience in practising Islamic Banking. Since 1983 Islamic banking is followed in Bangladesh. The history of Islamic banking are not new in the banking industry of Bangladesh. Islamic Banking started in Bangladesh after the establishment of Islami Bank Bangladesh Limited in 1983.

Currently there are 08 domestic private full fledge Islamic commercial banks are operating in this country with great reputation.  Almost 17 conventional commercial banks are also operating Islamic Banking functions by opening Islamic Banking branches.  

Among the 8 full-fledged Islamic banks, 2 banks, i.e. First Security Islami Bank and EXIM Bank are the converted Islamic Banks.

Islamic Banking is systems of financial intermediation that avoids receipt and payment of interest in its transaction and conducts its operation in a way that it helps achieve the objectives of an Islamic economy. The Islamic Banking system is a product of Islamic principles and philosophy and based  on Islamic Shari’ah since this system is an important part and parcel of Islam itself. 

Islami Banking Conversion from Conventional Banks in Bangladesh

Conversion indicates the Bank conversion from conventional (interest based bank) to Islamic Bank (Profit-Loss sharing based). In Bangladesh, there are three kinds of bank conversion seen. These are:

1. Opening an Islamic Banking window/corner in a conventional banking branch. Total 08 commercial banks have the Islamic Banking windows.
2. Introducing a full-fledged Islamic banking branch by a conventional Bank. There are 09 conventional banks have the full-fledged Islamic Banking branches.
3. Conversion the whole banking system from conventional banking into Islamic Banking. In Bangladesh only 02 banks, i.e. EXIM Bank Limited and First Security Islami Bank (FSIBL) are the converted Islamic Banks.