State-of-the-Art Challenges in the Islamic Banking System of Bangladesh: The Way Forward

One of the service sectors in Muslim nations with the quickest rate of growth is Islamic banking. This banking system is profit-and-loss sharing-based and does not charge interest on financing. Islamic banks often provide their clients with services in accordance with Islamic Shariah, which forbids receiving interest. Although Islamic banks' market share is increasing quickly in Bangladesh, the system's development is not up to par. Therefore, the purpose of this study is to investigate the present obstacles facing Islamic banking in Bangladesh and the most effective strategies for overcoming them. This study has adopted a qualitative approach, and the information is taken from a variety of reputed journals and conference proceedings using a systematic literature review (SLR) approach. The study's conclusions highlight the regulatory, Shariah, and governance issues that Bangladesh's Islamic banks are now dealing with. This analysis also identifies the most effective strategies that Bangladeshi Islamic banks can use to successfully address these issues.