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Country story

Bangladesh

Bangladesh combines full-fledged Islamic banks with Islamic branches and services inside a broader banking system.

Bangladesh Bank’s Islamic-banking guidelines supplement the general banking laws and set operating and reporting expectations.

Islamic banking assets49.52B2024
Manufacturing value addedNot availableNo verified observation
Median largest disclosed shareholding4.76 % of disclosed equity2024 · median across 16 qualifying banks
How Islamic finance is organised

Bangladesh Bank’s Islamic-banking guidelines supplement the general banking laws and set operating and reporting expectations.

Why this case matters

The setting links a large development and employment challenge to a sizeable Islamic-banking presence.

Central tension

Rapid institutional reach does not by itself reveal whether financing reaches productive firms or distributes risk differently.

What cannot be inferred

The available aggregates do not identify household access, sectoral loan quality or distributional outcomes.

Descriptive comparison

Gross capital formation

Latest available year: 2024.

Bangladesh Gross capital formation trajectory in original units.23.4225.8628.330.7333.1719992006201220182025YearGross capital formation (% of GDP)
Bangladesh

What this visual showsA verified country trajectory in the measure’s stated unit.

What it does not establishA causal effect of Islamic finance on the observed outcome.

Descriptive comparison

Financing directed towards FIRE-related activities

Country-year medians by bank type. Each point reports its covered-bank count.

FIRE ordinarily refers to finance, insurance and real estate. Here the measure is broader: it captures bank financing reported for financial institutions, insurance, real estate and consumer-durable activities. It is used as a proxy for firm-level financialisation. The measure does not imply that every underlying financing claim is speculative, harmful or unproductive. It is a sectoral-allocation proxy and a level measure that is sensitive to bank size.

Bangladesh descriptive medians by bank type, 2000 to 2022 where observations are available.16.1818.9421.724.4627.2220032008201320182023YearLogged FIRE-related financing volume (natural log) (natural-log units)
ConventionalIslamic

What this visual showsDescriptive median logged volumes among covered banks.

What it does not establishA bank-size-adjusted or causal difference between bank types.

Institutional sources