Bangladesh Bank Governor Ahsan H. Mansur announced that at least two large and strong Islamic banks are expected to emerge in the country in the future. Speaking on Saturday at the second day of the International Islamic Finance and Banking Conference at the University of Dhaka, he said these banks would ensure healthy competition and better returns for depositors. The conference was jointly organized by the Central Shariah Board for Islamic Banks of Bangladesh and the university’s finance department.

Mansur noted that although a significant portion of the banking sector operates under Shariah principles, investment opportunities for Islamic banks remain limited, creating liquidity management challenges. He emphasized the need to develop a Shariah-compliant bond or sukuk market to ease liquidity pressure and strengthen the sector. Currently, about one-fourth of the country’s total banking assets are under Islamic management, but the corresponding investment avenues have not developed proportionately.

The governor added that the government’s initiative to establish a sukuk market would reduce financing costs and help Islamic banks manage liquidity more effectively, leading to greater stability in the overall financial system.