Bangladesh Bank Deputy Governor SK Sur Chowdhury said on Saturday that the central bank is actively considering introduction of ‘Sukuk’ Islamic bond to enhance the prospects of Islamic finance in the country.
We are actively considering introduction of the Sukuk in the market, but the bond will be local, not sovereign,” the Deputy Governor said while speaking at the second session of Annual Banking Conference 2014.
Sukuk, an Islamic equivalent to a bond, is a certificate representing ownership of tangible assets or assets of a particular project or special investment activity. Unlike the conventional bonds, which merely represent ownership of a debt, Sukuk grants the investor a share of an asset, along with the commensurate cash flows and risks.
Bangladesh Institute of Bank Management (BIBM) organized the conference at its campus in the city. Some five papers focused on different emerging banking issues were presented at the second plenary sessions and a discussion on the papers was held by panellists.
BIBM Professor and director Dr. Prashanta Kumar Banarjee, Centre for Policy Dialogue Additional Research Director Dr. Khandaker Golam Moazzem, Economic Adviser of Bangladesh Bank Dr. Md. Akhtaruzzaman, Dhaka University Finance Department Professor Dr. Sadiqul Islam spoke as the panellists.
Speaking on a paper, Sur Chowdhury said the central bank is also preparing guidelines for Islamic banks of the country. He said the guidelines will watch the Shariah compliance of the Islamic banks of the country and Islamic finance products.
Speaking on the corporate social responsibility, the Deputy Governor said Bangladesh Bank is the only central bank which maintains an annual report on CSR. “CSR does not only carry out welfare activities, it has many other aspects too,” he said.
Originally published on www.thefinancialexpress-bd.com