A Comparative Study of Accountability Practices for Financial Reporting of Conventional and Islamic Banks in Bangladesh

The purpose of this study is to find out existing scenario of accountability practices in financial reporting of the conventional and Islamic banks in Bangladesh.This study investigates to know the reality of accountability practiced in the banking sector and to identify if there is any discrepancy exist between conventional and Islamic banking system from viewpoint of accountability in Bangladesh.The research is used qualitative method to collect primary data by a self-constructed structured questionnaire to survey among 400 respondents as well as secondary data are collected from 2 conventional banks and 2 Islamic banks in Bangladesh.A stratified random sampling technique is carried out in selecting final sampling unit.For comparing accountability practices data are analysed through ANOVA-single factor test using two software Microsoft excel and SPSS.Cronbach alpha is used to test the reliability of data.It is found that, there are no significant differences among the selected banks regarding accountability practices of commercial banks in Bangladesh both conventional and Islamic.Accounts division of both banking system cannot work independently and without interference of higher authority.It is also noticed that as different banking system Islamic banks fail to be accountable to follow the comprehensive Shariah specially in case of investment clients.The study suggested that the Bangladesh Bank authority should take necessary steps to ensure empowerment of Shariah board to regular report directly to the Bangladesh Bank management for both Islamic banks and conventional banks with Islamic branch and Islamic window.To practice accountability appropriately it is obvious for accounts division to ensure uninterrupted work flow as well as without pressure for target in both conventional and Islamic banks of Bangladesh.