General banking of EXIM Bank and a comparative study between islami banking and conventional banking

Abstract

The banking sector of the country was started after the establishment of the Bangladesh Bank and nationalization of six commercial banks which led the foundation of commercial banking in public sector. Gradually conventional banks spread all over Bangladesh. Though Bangladesh is overwhelmingly populated by Muslims, the idea of Shariah Based banking system developed quite recently. The banking sector of the country is dominated by conventional/commercial banks and there are only a few (eight) Islami Banks. This certain study looks forward about the mode by which an Islami Bank (EXIM Bank Bangladesh ltd) operates and what are the main differences between Islami Banks and conventional banks. The word Shariah attracts to the religious minded people of the country. Due to rising popularity of Islami banks some conventional banks are also trying to offer some Shariah based services (Ullah & Azad Chowdhury, 2013). Eight Islami Banks of the country share 18% of the total assets of the banking sector which is very high compared to rest 82% of the total assets shared among the conventional banks. This internship report was started with an humble attempt to illustrate the nature and character of Islamic Banking vis-à-vis the conventional banking. But at the end the outcome has proved to be by far a short raw and shallow description – an attempt with many short fall, incompetency’s, and ignorance’s – vast areas remaining unknown and unexplored due to time constraint. Key words: Islami banks, Conventional banks, Mudaraba, Mudarib.