BB Governor for mobilising zakaat fund to productive initiatives

BSS, Dhaka :
Bangladesh Bank (BB) Governor Dr Atiur Rahman strongly suggested Islamic banks and Islamic Microfinance Institutions (IMFIs) to develop institutional arrangements of mobilising zakaat fund to productive initiatives.
The governor addressing a seminar on challenges and opportunities of expanding financial inclusion through Islamic micro finance, said there were a lot of unexplored opportunities for Islamic banking and Islamic micro-financing.
For instance, he said the Islamic banks and the IMFIs would institutionally mobilize zakaat fund to productive sectors for creating jobs and generating income for the poor and the ultra poor people of the society.
The governor also assured the Islamic banks and IMFIs of all policy supports to make their initiatives a success.
“I assure you that Bangladesh Bank will be just as supportive with its good offices for promotion of Shariah compliant Islamic Micro finance through IMFIs, on their own or in collaboration with banks,” he said.
Dr Atiur further said that regulatory provisions could be suitably modified or developed in collaboration with the Microcredit Regulatory Authority (MRA).
He, however, cautioned banks and financial institutions about any association or involvement with money laundering and fundamentalist extremism driven influences.
The governor also advised the IMFIs to be involved strongly in the process of financial inclusion, which is one of the main thrust areas of BB’s agenda for making financial sector more socially responsible.
He said Islamic banking is thriving very well in Bangladesh with sharing about a fifth of the domestic banking market. But, Islamic microfinance hasn’t made quite as significant inroad yet in the microfinance market, indicating its large unexploited growth potential.
“Today’s seminar will therefore be useful in exploring the growth opportunities, in identifying the impediments, and in coming up with ideas and suggestions about ways of getting around the impediments”, he said.
Islamic Relief Bangladesh (IRB) in association with Central Shariah Board for Islamic Banks of Bangladesh (CSBIB) organized the seminar at the CIRDAP auditorium in the city.