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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.

23.4225.8628.330.7333.1719992006201220182025YearGross capital formation (% of GDP)
Bangladesh
View chart data
Bangladesh Gross capital formation trajectory in original units. Values for Year and Gross capital formation (% of GDP) by series.
SeriesYearGross capital formation (% of GDP)Source note
Bangladesh · 20002,00024.22Authorised country-level annual series
Bangladesh · 20012,00124.61Authorised country-level annual series
Bangladesh · 20022,00224.81Authorised country-level annual series
Bangladesh · 20032,00325.18Authorised country-level annual series
Bangladesh · 20042,00425.5Authorised country-level annual series
Bangladesh · 20052,00526.36Authorised country-level annual series
Bangladesh · 20062,00626.68Authorised country-level annual series
Bangladesh · 20072,00726.74Authorised country-level annual series
Bangladesh · 20082,00826.79Authorised country-level annual series
Bangladesh · 20092,00926.8Authorised country-level annual series
Bangladesh · 20102,01026.83Authorised country-level annual series
Bangladesh · 20112,01128.01Authorised country-level annual series
Bangladesh · 20122,01228.85Authorised country-level annual series
Bangladesh · 20132,01328.94Authorised country-level annual series
Bangladesh · 20142,01429.14Authorised country-level annual series
Bangladesh · 20152,01529.44Authorised country-level annual series
Bangladesh · 20162,01630.24Authorised country-level annual series
Bangladesh · 20172,01730.95Authorised country-level annual series
Bangladesh · 20182,01831.82Authorised country-level annual series
Bangladesh · 20192,01932.21Authorised country-level annual series
Bangladesh · 20202,02031.31Authorised country-level annual series
Bangladesh · 20212,02131.02Authorised country-level annual series
Bangladesh · 20222,02232.05Authorised country-level annual series
Bangladesh · 20232,02330.95Authorised country-level annual series
Bangladesh · 20242,02430.7Authorised country-level annual series

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.

16.1818.9421.724.4627.2220032008201320182023YearLogged FIRE-related financing volume (natural log) (natural-log units)
ConventionalIslamic
View chart data
Bangladesh descriptive medians by bank type, 2000 to 2022 where observations are available. Values for Year and Logged FIRE-related financing volume (natural log) (natural-log units) by series.
SeriesYearLogged FIRE-related financing volume (natural log) (natural-log units)Source note
Conventional · 20042,00424.651 covered bank
Conventional · 20052,00524.463 covered banks
Islamic · 20052,00517.321 covered bank
Conventional · 20062,00624.584 covered banks
Conventional · 20072,00724.844 covered banks
Islamic · 20072,00717.151 covered bank
Conventional · 20082,008255 covered banks
Islamic · 20082,00817.392 covered banks
Conventional · 20092,00924.9113 covered banks
Islamic · 20092,00917.093 covered banks
Conventional · 20102,01025.3220 covered banks
Islamic · 20102,01017.954 covered banks
Conventional · 20112,01125.6120 covered banks
Islamic · 20112,01117.935 covered banks
Conventional · 20122,01225.7521 covered banks
Islamic · 20122,01218.195 covered banks
Conventional · 20132,01325.6822 covered banks
Islamic · 20132,01318.423 covered banks
Conventional · 20142,01425.7422 covered banks
Islamic · 20142,01418.774 covered banks
Conventional · 20152,01525.7822 covered banks
Islamic · 20152,01518.764 covered banks
Conventional · 20162,01625.7324 covered banks
Islamic · 20162,01619.315 covered banks
Conventional · 20172,01725.8127 covered banks
Islamic · 20172,01720.466 covered banks
Conventional · 20182,01826.0128 covered banks
Islamic · 20182,01820.816 covered banks
Conventional · 20192,01926.1428 covered banks
Islamic · 20192,01920.966 covered banks
Conventional · 20202,02025.9627 covered banks
Islamic · 20202,02021.176 covered banks
Conventional · 20212,02126.0227 covered banks
Islamic · 20212,02120.426 covered banks
Conventional · 20222,02226.0127 covered banks
Islamic · 20222,02219.666 covered banks

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