Data Analysis and Findings of Islamic Banking

Analysis Of Islamic Banking And Finance In Bangladesh: How It Meets The Needs Of The Local Population
 
Table of Contents

• Chapter 1: Data Analysis and Findings
• 1 Overview
• 2 Descriptive Analysis
• 3 Primary Data Analysis
• 4 Analysis of Interview of Banking Officials of Bangladesh
• 5 Regression Analysis
• 6 Findings
• 7 Summary
• Chapter 2: Discussion
• 1 The Concept and Exposition of Islamic Finance and Banking
• 2 The Challenges, Policy Options and the Current Position of Islamic Banking
• 3 The Differences between Conventional Banking and Islamic Banking
• 4 The Ability of Islamic Banks in Developing Addressing Local and Global Circumstances
• 5 The Facilitation of Islamic System of Finance and Banking among the Local Population of Bangladesh
• Chapter 3: Conclusion and Recommendation
• 1 Conclusion
• 2 Recommendation
• 3 Future Research Scope
• References
• Appendices

Chapter 1: Data Analysis and Findings

1 Overview
After taking into the consideration of the Islamic Finance in Bangladesh, this chapter of the study intends to analyze the data through the use of the methodology that has been set in the previous chapter. The scholar has conducted descriptive analysis when various case studies were critically analyzed in respect of the Islamic finance in Bangladesh. Furthermore, the survey was conducted among the banking customers outside of the renowned Islamic bank to determine the effectiveness of the Islamic bank. Furthermore, the interview will be conducted accordingly, so that the data can be analyzed of how efficient the Islamic banks are for meeting the needs of the locals. A regression analysis has also been conducted so that the hypothesis can be determined in respect of the study.This chapter of the study will provide the scholar with a rational understanding of Islamic finance in Bangladesh and their ability to meet the needs of the local population.

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2 Descriptive Analysis
According to the perception of, Rasel and et al., (2018), Islamic banking is a system through which, the financial transactions of Islam is taken into consideration. This is the code of life for the Islamic people who believe to submit themselves to the will of Allah. This banking system usually reduces the gap between the poor and the rich and it is practiced fluently in society. It has been observed that a majority of 85 per cent of the Muslim people states in Bangladesh and due to this reason, the Islamic banking has been launched by establishing the Islami Bank Bangladesh Limited (IBBL). As per the studies, it has also been observed that the potential of Islamic banking and finances in Bangladesh are having some of the indicators that state about the total deposits, total investments, surplus liquidity, total remittances and some of the investment-deposit ratio.

It has been noticed that the amounts of these were near about crores. The Islamic banking is depended on Shariah principles and on the other hand, it is also based on the risk sharing issue that is depended between the investor and entrepreneur, however, the maximization theory is based on the Shariah restrictions. From the figure below, it can be understood that the distribution of deposits in all the Islamic banks are quite higher and it creates a huge impact on the business of Bangladesh people (Mansoor Khan & Ishaq Bhatti, 2008). The figure states that the highest level of deposit is seen with respect to the IBBL. However, apart from this, the level is seen in FSBL and it is followed by EXIM, Al Arafah and many others. The SIBL bank is seen to be at the middle of the competition and after that, the Union Bank, Islamic Banking Branch and Islamic Banking Windows are taken into consideration.

Islamic banking also uses various deposit mobilization, which is done through current account, savings account, term deposit and a savings bond. The Islamic banks also conducted some section wise development by using different facilities as well. It has been observed that in the case of MSME, the investment is said to be near about 29.49. On the other hand, industry investment is observed to be 23.925. The real estate is 7.08 and trade and business is said to be 2.7. Apart from this, the transportation is 1.53 and agriculture is 1.46 and electricity, water supply and gas is said to be 0.65 and poverty alleviation is 0.1 and others is seen to be 8.77 (Rasel & et al., 2018). From this, the profit of Islamic banks can be understood. This clearly states that Islamic banks have brought success in the country by using some of its innovative measures. Thus, the figure below states about the influence of the Islamic bank on the sectors of Bangladesh.

In case of Islamic bank, the customer's awareness is seen to be quite higher and a good relationship has been observed in respect of the product and services of the Islamic Bank and the length of the relationship of the customers with the Islamic banks. However, some of the negative aspects can also be noticed in Islamic banking. Most of the people in the Islamic banks fall under the age group of 25-35 years of age and this creates an impact on the other age groups. Thus, it can be stated that there is a need for making the Bangladesh people aware of Islamic banking and the different facilities they can have from this (Khan,Hassan & Shahid, 2007). On the other hand, it can be stated that the banks need to provide the quality amount of services to the customers as this will be efficacious for the banks to gain customer satisfaction and the customers will also be able to enjoy the facilities that are found in such Islamic banks.

However, it has also been noticed that there is also a good contrasting factor between conservative banks and Islamic banks. They provide different types of facilities but they are having some similarities as well. The growth of Islamic banks is increasing day by day in Bangladesh. From some results, it has been known that the Islamic banks are getting more assets as compared to conventional banks. This has been possible because of the facilities that these banks are providing. It has better scope in the near future if these banks are able to provide satisfying services to the customers. Improvement is also needed to be brought according to the needs of the people of Bangladesh. In this way, Islamic banks will be able to gain success in Bangladesh.

3 Primary Data Analysis

In the primary data analysis, figure 5 states the religion of the respondents who use Islamic banking services in Bangladesh. It was found that out of the respondents, there are two Christian, twenty six Hindu and five other religions. Out of the rest respondents, sixty seven of the respondents were Muslim. From the following figure, it was determined that the majority of respondents were of the religion Muslim. Thus, in Bangladesh, most of the people who tend to use Islamic banking services are from the Muslim community.

In respect of figure 6, the age of the various respondents was determined for the study. It was found that the forty five of the respondents are from the age group of twenty five to thirty four. Seven respondents in the survey belonged from the age group of forty five to sixty. It was further found that thirty one people in respect of the respondents were from the age group of thirty five to forty four. It was also found that seventeen people have been addressed to be under the age of twenty four. Thus, from the following survey, it can be stated that majority of the customers of Islamic bank in Bangladesh are from the age group of twenty four to thirty four.

In respect to use a service, an effective knowledge about it is quite important. It has been found in figure 7 that the respondents were questions about their knowledge of Islamic banking in Bangladesh. It was found that thirty eight per cent of the respondents strongly agreed to the fact and twenty one per cent of the respondents agreed to the fact. It was determined that eleven per cent of the total respondents were neutral and ten per cent of them strongly disagreed followed by twenty per cent who disagreed to the fact. Thus, in respect to it, fifty nine per cent of the respondents agreed that the people of Bangladesh have limited knowledge towards the use of Islamic banking and how it is effective towards the society and the growth prospect.

In respect of meeting the financial need by Islamic Banking, it has been derived in figure 8, that twenty two per cent of the respondents have strongly agreed to the fact and thirty nine per cent have agreed to the fact. On the contrary, nineteen per cent of the respondents have strongly disagreed to the fact, nine per cent were neutral and eleven per cent has disagreed to the fact. Thus, from the above figure, it is quite clear that most of the people have stated that the Islamic banks of Bangladesh have been able to provide effective financial needs to the people who are using the services.

Islamic banking and financial services tend to follow the use of Shariah for having stability in an economical aspect. In figure 9, it has been seen that five of the respondents have disagreed to the fact and twenty people have strongly disagreed to the fact. Twelve of the respondents have been neutral about the question and twenty two people have agreed to it. Furthermore, it has been seen that forty one of them have strongly agreed to the fact. Thus, from the following data, it can be stated that the majority of the people have agreed to the use of instruments of Shariah, in respect of having economic stability in Bangladesh.

Bangladesh is a Muslim country; there has been a significant rise in Islamic finance over the last couple of years. In figure 10, it has been seen that thirty five per cent of the respondents have strongly agreed to the question and forty five per cent of them have agreed to it. Ten per cent of the people has disagreed five per cent have strongly disagreed to it rationally. Of the total respondents, it was found that five per cent of the respondents were neutral to the question. Thus, from the following figure, it can be stated that majority of the people have agreed to the fact that the Islamic banking in Bangladesh has increased over the last decade and have been providing the service effectively.

In figure 11, it was found that the principles of the Shariah are taken into consideration in respect of Islamic finance. Three of the respondents were neutral to the fact and twenty four of them have disagreed and twenty three of them have strongly disagreed. On the other hand, twenty eight of them have agreed to it and twenty two of them have strongly agreed. Thus, from the following observation, it can be stated that the respondents had a mixed review and there were slightly more respondents who agreed as compared to the one who disagreed. This states that the principles are followed but are of a concern in the country as they are not properly amended.

In figure 12, it has been seen that the customers of the banks in Bangladesh were questioned with respect to their choice of bank. It was found that eleven of them were neutral, twelve of them strongly disagreed and eleven of them disagreed it. On the contrary, it was found that thirty eight of them strongly agreed to it and twenty eight of them agreed to the question. Thus, it can be stated that majority of the respondents agreed to the fact that Islamic bank is better in comparison to conventional banking in Bangladesh.

It has been found that the retention and attraction of the customers towards the banking instrument plays a very important role. In figure 13, it has been seen that the twenty eight per cent have strongly agreed to the fact and thirty seven per cent have agreed to it. Thirteen per cent have disagreed and ten per cent have strongly disagreed to the question. Twelve per cent were neutral towards the question, thus, it can be stated that the majority of them have accepted that the attraction and retention of customer have increased towards the instruments of Islamic nature.

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4 Analysis of Interview of Banking Officials of Bangladesh

Q1. Do you think that the Islamic banking in Bangladesh is growing drastically?
The MD of First Security Islamic Bank Ltd stated, "I think that the growth of Islamic banking is still at its early stage and needs to be improved to meet the customer demands and needs in Bangladesh. The market share of Islamic banking and finance is quite low as compared to the conventional banks in Bangladesh. In recent years, the growth and expansion of Islamic finance have grown drastically and is working for being a sector of fully fledged. In comparison to the other banking sector, customers are being more attracted to Islamic finance.
The Finance Manager of Islamic Bank Bangladesh Ltd said, "Bangladesh is a country with a majority of Muslim in population. The growth of Islamic finance has seen a rapid growth in the country. The law and the regulation of the country are further cooperating with the system so that the growth can be achieved in a significant manner. The market share of Islamic finance has grown by almost twenty per cent after bringing in the aspect of growth in the financial market of Bangladesh. The diversification that has been set by the banking segment of Islamic finance will provide better service to the Muslims of Bangladesh.
The scholar has learned that there is significant growth of the Islamic finance in Bangladesh and the market share has drastically improved over the last couple of years in the country.

Q2. Do you believe that there is an economic impact by the Islamic financial system in Bangladesh?
The Finance Manager of First Security Islamic Bank Ltd has replied, "The Islamic finance has made a drastic impact on the economy of various Muslim and Non-Muslim countries around the world. In respect to the profitability of Islamic finance, it has been found that the growth in Bangladesh has improved drastically. The margin of the net profit has increased over the last couple of years in Bangladesh and it has touched down 3.6 per cent over the last year. This economic impact is positive for Bangladesh and contributed towards increased per capita income of the individuals.
The MD of Islamic Bank Bangladesh Ltd has stated, "The Gross domestic product of the country has increased significantly over the last couple of years. The income in respect of the asset of Islamic finance was 7.3 as compared to 1.9, which was for banking in general. This has further increased the diversification of the workforce which are skilled in Bangladesh and has been an important segment in the country.
From the following interview, the scholar has been able to learn effective knowledge that the growth in an economic aspect has been a major factor for Bangladesh. The GDP and the per capita income have been able to grow by the implementation of Islamic banking in Bangladesh.

Q3. Do you think that Islamic banks in Bangladesh are able to meet the needs of the local population?
The MD of First Security Islamic Bank Ltd agreed, "The Islamic banking in Bangladesh has been able to meet the needs of the customers, who are using the services. The growth in the sector has also brought forward various problems by the principles of Shariah. The instruments that are a part of Islamic finance are quite robust and are widely accepted by the customers of the bank. In respect of it, the Islamic banking sector has been able to amend with the regulations of the country and has provided better support to the local population of the country.
The Finance Manager of Islamic Bank Bangladesh Ltd replied, "The banking customer in Bangladesh has grown over the last decade towards the Islamic finance and the instruments that are a part of the financial system of the country. The needs of the customers of Islamic banking are being duly met by the banking sector. The services and support have drastically promoted Islamic banking in Bangladesh.
From the interview, knowledge has been gained towards the customer service of the Islamic Bank in Bangladesh. This has increased to have a competitive advantage in respect of the conventional banking system.

Q4. Do you agree that the Islamic banking is better than the conventional banks in Bangladesh?
The Finance Manager of First Security Islamic Bank Ltd replied, "Looking from the prospect of various factors in Bangladesh, the Islamic banking has been one of the finest acceptable banking systems as compared to the conventional banking. It has been found that Islamic banking has an advantage in respect of new business as they do not charge interest for the loans. It has been found that this provides the customers to overcome the hefty payment of interest.
The MD of Islamic Bank Bangladesh Ltd said, "The Islamic banking system has led to the growth of the no-interest principle in Bangladesh. The small entrepreneur has been greatly supported by the use of Islamic finance. The conventional banking system is more rigid and does not support the interest of free transactions. Islamic banking further helps in the growth of the country in an economic aspect and improves the contribution towards society drastically. The Islamic banking uplifts society as a whole as compared to conventional banks, which are less society centric.
From the interview, the scholar learned that the Islamic bank helps the development of society and promotes interest-free transaction. It is flexible as compared to the rigid nature of the conventional bank.

Q5. Do you think that the regulation and the policies of Bangladesh are flexible towards Islamic Banking?
Finance Manager of Islamic Bank Bangladesh Ltd said, "In respect of the growth of Bangladesh, it has been seen that the policies and the regulations are to be versatile. It has been found that the Bangladesh government has accepted the financial aspect of Islamic finance and has promoted various financial institutions in the country. It has amended the various instruments of Islam and factors, which are to be increased to use Islamic finance more significantly.
Managing Director of First Security Islamic Bank Ltd replied, "The policies and the regulation of Bangladesh government has increased drastically to overcome the challenges and the problems that are faced in respect of Islamic finance. The government of the company has made effective efforts to increase the awareness of Islamic finance in Bangladesh. Furthermore, the regulations and the policies of the country are friendlier towards Islamic finance and the instruments such as Shariah-compliant bonds and contracts such as Murabaha, wakala, Istithmar and Ijara. Flexibility towards Sukuk finance is further promoted by low taxation for the Islamic instruments.

In respect of the interview, it has been found that Islamic finance and its instruments get proper flexibility by the government of Bangladesh and promote the growth of the country.

5 Regression Analysis

The regression analysis has been achieved after taking into the consideration of two values of x and one value of y. The factors that have been considered for the value of x1 and x2 are the financial facility in Bangladesh and the follow of the principles of Shariah for the people by the Islamic financial institute. It has been derived that in respect of the value of y, the scholar has taken into consideration of the customer satisfaction of Bangladesh by the Islamic financial institutes. It has been further derived that the regression has been done after taking into the consideration of the x and y values. The values that were derived from the regression provides an effective result for the study. The total number of observation was 100 and the standard of error for the regression was 0.489944267. The Multiple of R during the regression was obtained as 0.940734403 and the R square was derived to be 0.884981218. The adjusted value of R Square was 0.882609696. The value of the P that was derived to be 0.833914831, which is significantly greater than the value of 0.05. Thus, from the above regression and the value of the P that was derived, it can be stated that the null hypothesis has been rejected and the alternative hypothesis has been accepted for the study. This shows that Islamic banking in Bangladesh is able to meet the needs of the people robustly.

6 Findings
The research scholar has used the survey, interview session and descriptive analysis process for gathering the information that would help in supporting the research study. The survey was conducted among the general public where the majority of them were Muslim and some were Hindu and other religions. It has been understood that Islamic banks are famous among the youngsters who are of the age group 25 to 34 of age. On the other hand, it has been observed that limited knowledge is available for the people to understand the Islamic banking. When the people were asked whether their financial needs are met by the Islamic banking, some people state that their financial needs are met and some say the opposite. However, the people were quite aware of the use of Shariah instruments that would help in providing economic stability in Bangladesh.

Some also stated about the financing facility of Islamic banking that was helpful for the Bangladesh people. On the other hand, a majority of the people was also following the principles of Shariah and they got advantages after using it. It has been understood that Islamic banking is better than conventional banking and due to this, the Bangladesh people are receiving benefits from this. Most of the respondents also stated that with the help of Islamic instruments, customer retention and attraction has been possible. Apart from this, the interview session was also continued forward through which, it has been known that Islamic banking is growing rapidly in the country like Bangladesh. According to the interviewees, the Islamic banks have been creating a huge economic growth for Bangladesh. However, it fails to meet the demands of the local population and it is trying to take some measures through which, the development can be brought.

Islamic banking is also stated to be best than the conventional ones as it helps in developing the society and bringing innovation in the transaction process. Besides this, it has also been noticed that Islamic banking has gained flexibility among the people as the government of Bangladesh was helpful in promoting growth. However, from the descriptive analysis, it has been known that Islamic banks were effective for the country as it has helped in increasing the investment of various sectors. In this way, the process of progressive distribution of deposits is also playing a better role in the country and its development.

From the regression analysis, it was also determined that the Islamic banking of Bangladesh are able to fulfill the needs of the customer and follows the principle of the Islam in their day to day transactions.

7 Summary
The survey and interview helped gain data from the people of Bangladesh about Islamic banking. On the other hand, descriptive analysis was also effective enough for the research study. The survey was conducted among the people of Bangladesh and from them, their viewpoint about Islamic banking has been known. The interview was conducted among the officials of different banks such as First Security Islamic Bank Ltd and Islamic Bank Bangladesh Ltd. From them, the condition of the Islamic banks has been acknowledged.

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Chapter 2: Discussion

1 The Concept and Exposition of Islamic Finance and Banking
Islamic finance is one of the famous banks that are situated in the country, Bangladesh. It has also been noticed that most of the people from Bangladesh are getting benefits from the Islamic banks. It is a system that uses the Shariah law or in other words, it can be stated as Islamic laws. After the establishment of the Islamic banking system in Bangladesh, the country has gained better progress and advantages. Due to this, Islamic finance has also gained a scope of expanding in the marketplace (Shaban & et al., 2016). However, due to some of the affecting rules and regulations, it has not been possible for the country to gain success through Islamic finance and banking. It can be asserted that 300 banks and 250 mutual funds were found that are following the principles of Shariya.

2 The Challenges, Policy Options and the Current Position of Islamic Banking
Some of the influencing policies and challenges were affecting the Islamic banks as well. It has been noticed that in spite of all the advantages, some of the challenges were observed regarding the prohibitions. There were multiple numbers of restrictions, which were varying in different countries and due to this reason; it was becoming a problematic issue for the people of Bangladesh to understand every variation in the Islamic finances. On the other hand, according to Islamic Finance, it is a sinful act if anyone asks for an interest. The person needs to pay for this as per the rules of Usury. Other banks provide loans for every business purposes whether it is for the business of alcohol or meat. However, in the case of Islamic banks, it is just the opposite (Dikko, 2016). They do not provide any assistance or does not allow any loans for the people who are going to trade which involves pork meat or alcohol. This creates a negative impact on the people of Bangladesh. Some of the positive sides can also be noticed in Islamic banking and finance in Bangladesh. It has been observed that most of the people enjoy its facilities as it is depended on religious beliefs and values.

3 The Differences between Conventional Banking and Islamic Banking
Conventional banking is differing from Islamic banking in different aspects. Due to the various principles of the Islamic banking system, most of the Islamic people are moving from the conventional banking system to the Islamic banks. According to the people of Bangladesh, Islamic banks are providing them with some of the Islamic laws that satisfy their values and beliefs. Majorities of the people in Bangladesh are Muslim and they gain an advantage from using Islamic banking and finance. From the findings, it has been noticed that Bangladesh people are fond of Islamic banking. However, it has been witnessed that the world has faced tough issues regarding the conventional banking system and due to this, the majority of the people are agreeing with Islamic finance (Obaidullah, 2017). The factors of inflation are prevailing in conventional banks, which are absent in the Islamic banks. According to the Islamic people, their religious laws and beliefs do not count under the conventional banks and on the other hand, the Islamic banks do that. It can be another cause behind using Islamic banks over conventional ones.

4 The Ability of Islamic Banks in Developing Addressing Local and Global Circumstances
With the help of the policies and position of the Islamic banking system, Islamic banks will be able to develop itself among the local and global environment. Riba was the first policy through which, the Islamic banks have started to bring up its ability. Similarly, another policy was also addressed, which is stated as microfinance. Such policies have given the people of Bangladesh, the power of achieving the self-sufficiency issue. However, it has been possible for the banks to provide a quality amount of services to the people. From the sources, it has also been known that the Islamic banks have contributed a lot of economic support to the country. Thus, through its different policies and restrictions, it will be possible for the Islamic banks to address the needs of the global and local people (Arafah & Nugroho, 2016). From the findings, it has been observed that the banks are trying to focus on the different regulations of the country and in this way; they will also be able to support the need of the local population.

5 The Facilitation of Islamic System of Finance and Banking among the Local Population of Bangladesh
It can be noticed that the Islamic system of finance and banking has facilitated among the local population of Bangladesh. With the help of different policies and restrictions, the banks have been able to expand itself in this country. Since most of the people are Muslim, Islamic banks have gained an opportunity to expand better among the local population. From the findings, it has been observed that in Bangladesh, the distribution of deposits has gained at a different level. On the other hand, the percentage of investment is also seen to be expanding in different sectors present in the Islamic banks (Rasel & et al., 2018). However, from the interviewees' viewpoint, it can also be understood that the banks are being expanded in Bangladesh because of the positive support of the local population. The survey result also allowed the scholar to understand the subject matter in a better way.

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Chapter 3: Conclusion and Recommendation

1 Conclusion

The research scholar in this research study has taken an initiative to focus on the condition of Islamic banking and finances. Apart from this, the scholar also stresses on the rules and regulations of Shariya that are present in the banks of Bangladesh. Some of the objectives are also taken into consideration. The challenges, policy options and current position of Islamic banking are explained where the different restrictions and policies are seen to be influencing the Islamic finance. However, the differences between Islamic banking and conventional banking are also presented in the research study, from where the usefulness of Islamic banks has been observed as compared to the conventional banks. Due to the Islamic laws and other Shariah laws, these banks are expanding in a better manner in both the local as well as in the global market. Islamic banks use some of the financing facilities that allow them to satisfy the people of Bangladesh. Some of these are Mudaraba, Ijarah, Bai-Muajjal and many more.

In this research study, the research analyst has taken the pragmatism research philosophy. Apart from this, it has also considered the abductive research approach. In the research strategy, it has taken the qualitative and quantitative research strategy. The primary and secondary data are used for gaining data from the people of Bangladesh and the officials of the Islamic banks. 100 people were taken into consideration for the survey and 4 officials were considered for an interview. The survey was conducted for understanding the demand and the growth of the Islamic banks in Bangladesh. However, data was also collected from the journals, websites and other sources. From these, case study analysis was also done with the help of descriptive method. Research onion was used by the research scholar to select the appropriate method for the research study.

The survey result states about the viewpoint of the Bangladeshi people. From them, it has been known that the maximum number of people in this country is Muslim and they are having quite an effective knowledge about Islamic banking and finances. However, some stated that they do not know about it. When the question arises regarding the financial needs of Islamic banking, they stated that their needs were fulfilled but not to the expected level. However, the banks are using Shariah instruments to stabilize the economic rate and understanding. According to the respondents, it has been known that the economic stability rate is not up to the mark. The satisfying result is seen regarding the financing facility of the Islamic banking system in Bangladesh. In this way, the respondents were also agreeing with the fact that Islamic banks are better than the conventional ones and with the help of their different principles, the customers are being attracted. From the interview, it has been known that the banks are expanding drastically and the country is being impacted because of economic stability. It has also been noticed that the policies and regulations of Bangladesh are flexible for the growth of Islamic banking. Similar types of results are also seen in the case study analysis.

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2 Recommendation

After analyzing the different issues related to the Islamic banking, it can be asserted that there is need of bringing some change in the management of the banks. People of Bangladesh are having less knowledge about the Islamic banking, due to this reason, it can be recommended that the banks should make people aware of the policies they uses so that they will be able to attract their customers more through this. On the other hand, it has also been observed that the Islamic banks are able to meet the financial needs of the people but they are not satisfied with the facilities. Thus, the services that are provided to them are needed to be changed. Extra preferences should be given to their needs.However, it has also been noticed that the Islamic banks are having some issues regarding the matter of harmonization and it is also having a shortage of constructive knowledge. For this reason, the products and services that are provided are not appropriate to the understanding of the common people.

Thus, it can be suggested that the Islamic banks need to bring coordination among the people of the organizations. Along with this, it is also the responsibility of the banks to manage a good relationship with the common people so that they can make them understand about the products and services. Some of the limitations are also seen in respect to the Bangladesh Islamic banks. According to the sources, the banks are not complying with the different Islamic laws and due to this reason, there is need of modifying the banks by using innovative strategies. In most of the cases, the banks have failed to function in the global market and this was because of the Shariah principles (Khairi & et al., 2018). Thus, it can be suggested that the banks should amend their policies in such a manner that it would not create an impact on the services that the banks are providing in the global as well as local environment.

3 Future Research Scope

In this research paper, the focus of the research scholar is on the Islamic bank of Bangladesh however, the Islamic banks of other Asian countries are not considered. On the other hand, the scholar was also unable to use some of the relevant information about the other countries where Islamic banking is leading. The way the countries met the needs of the population was also not explained and this created a scope for future research.

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