The CENTRAL SHARIAH BOARD FOR ISLAMIC BANKS OF BANGLADESH (CSBIB) was established on August 16, 2001, as per instructions of the Bangladesh Bank (the Central Bank of Bangladesh). It is an apex body of Islamic Banks and Financial Institutions operating in compliance with Shariah in Bangladesh. The main objective of CSBIB is to provide all-out cooperation and assistance to the regulatory authority a
nd its member institutions for tracking the right path to the Islamic banking industry under the light of Islamic Shariah. VISION
To enable Islamic Banks operating in Bangladesh to carry out their activities according to unified guidance and principles of Islamic Shariah and laws. Islamization of the whole banking system in Bangladesh so that the country can advance to comprehensive development in the light of welfare-oriented Islamic economics. To establish CSBIB as an institution and a Shariah-based reference center for Islamic Banking and Finance. MISSION
To co-operate and advise the member banks to apply the uniform and unanimous operational procedures;
To procure, preserve, publish and translate books, periodicals, and journals on Islamic Economics, Finance, banking, and Shariah;
To conduct Shariah-related training and research works to implement Shariah principles in the operation of the member banks and so on;
To play a due role in increasing people’s awareness regarding financial transactions according to principles of Islamic Shariah. ORGANOGRAM OF CENTRAL SHARIAH BOARD
There is a General Assembly, an Executive Committee, and a Fiqh Committee to conduct all activities of the Central Shariah Board. GENERAL ASSEMBLY
The Chairmen and Member Secretaries of Shariah Supervisory Committees of member institutions, Chairmen of Boards of Directors, and Managing Directors of those institutions are the ex-officio members of the General Assembly. EXECUTIVE COMMITTEE
Board Members constitute an Executive Committee to approve all current activities primarily and make proposals for new initiatives. At present, it has 10 honorable members. FIQH COMMITTEE
Board Members constitute a Fiqh Committee to decide Shariah issues. Now, this committee consists of 10 honorable members. MEMBER INSTITUTIONS OF THE CENTRAL SHARIAH BOARD
Central Shariah Board currently has 26 Member Institutions, including 10 fully-fledged Islamic Banks, 15 banks offering Islamic financial services, and 1 non-bank financial institution. CONTRIBUTION TO THE INDUSTRY & CENTRAL BANK
DRAFT OF ISLAMIC BANK COMPANY LAW
CSBIB prepared the ‘Islamic Bank Company Law’ (draft) and submitted it to Bangladesh Bank for promulgation. Presently, the Islamic Banks functioning in Bangladesh are being operated under the “Bank Company Law 1991,” which was legislated to serve conventional banks. The representative from CSBIB was included in the Focus Group to prepare the Guidelines for Islamic Banking issued by Bangladesh Bank in 2009
APPROVAL OF INTER-ISLAMIC BANK MONEY MARKET REGULATION
No Islamic Bank can borrow money from a call money market to solve liquidity scarcity because of interest connection. Therefore, CSBIB approved the “Inter Islamic Bank Money Market Regulation” so that Islamic Banks can deal with each other to solve the scarcity of liquidity and excess liquidity according to Islamic Shariah. SHARIAH MANUALS ON DIFFERENT ISLAMIC BANKING PRODUCTS
CSBIB has taken initiatives to prepare Shariah manuals on different modes of investment for easy operation of banking activities. CSBIB has designed and approved many Shariah Manuals for Islamic Banks so far. Some essential manuals include: ‘Shariah Manual for Buying and Selling Shares’, ‘Islamic Credit Card’, ‘Common Shariah Audit Principles’, ‘Murabaha Manual’, ‘Shariah Principles for Foreign Exchange Forward’, ‘Shariah Principles for Mudaraba Term Deposit Receipt’, And ‘Principles for Conversion of Conventional Bank to Islamic Bank’. GIVING SHARIAH VERDICTS ON VARIOUS ISSUES SENT FROM BANGLADESH BANK
Central Shariah Board has given Shariah Verdicts on various issues sent from Bangladesh Bank. Some are as follows:
Performing Zakat by Banks Offering Islamic Banking Services. Financing of Bank Against Delivery Order. Islamic Foreign Exchange Forward. Giving Deal-Wise Investment Facility by Shariah-Based Banks
Receiving Fund/Deposit from Conventional Banks/Financial Institutions by Islamic Banks in Islamic Modes. ISLAMIC BANKING AWARD
The ‘Islamic Banking Award’ is the most widely known activity of CSBIB. Each year, CSBIB offers an ‘Islamic Banking Award’ to the individuals and organizations who make extraordinary contributions to the Islamic banking of Bangladesh. The Award consists of a certificate, a crest, and a cash endowment. COOPERATION WITH AAOIFI
3 MoUs were signed between CSBIB and AAOIFI. They included:
1. Educational Partnership, 2. Exam-venue, and 3. Translation of Shari’ah Standards into Bangla. CONDUCTING C**A & CSAA COURSE IN BANGLADESH
CSBIB conducts AAOIFI Fellowship Programs, namely: ‘CERTIFIED ISLAMIC PROFESSIONAL ACCOUNTANT (C**A)’, ‘CERTIFIED SHARI’AH ADVISER AND AUDITOR (CSAA)’, and ‘CERTIFICATE OF PROFICIENCY IN FINANCIAL ACCOUNTING STANDARDS (CPFAS)’ in Bangladesh as an Education Partner of AAOIFI. Up to now, 16 Candidates have received C**A Fellowship, and 72 Candidates have obtained CSAA Fellowship through CSBIB. CONDUCTING JOINT ACTIVITIES WITH BIBM
Central Shariah Board regularly conducts Training Courses, Training Workshops, and Review/Research Workshops with the Bangladesh Institute of Bank Management (BIBM). CERTIFICATE COURSE ON ISLAMIC BANKING & FINANCE
Central Shariah Board conducts a ‘Certificate Course on Islamic Banking & Finance’ for people from all walks of life. ARRANGEMENT OF INTERNATIONAL WEBINAR:
CSBIB arranges International Webinar on Islamic Banking and Finance. Some of them are as follows:
‘COVID-19 Pandemic: Challenges and Opportunities for Islamic Banking Industry of Bangladesh’, ‘Workshop on Issuance and Management of Sukuk in Bangladesh’ jointly organized by CSBIB & ISRA, Malaysia. ARRANGEMENT OF NATIONAL & INTERNATIONAL SEMINARS
CSBIB has so far organized many seminars on Islamic Banking and Finance. Some of them include: Seminar on Islamic Micro Finance jointly with Islamic Relief UK, Seminars on ‘It is an Unavoidable Demand of Time to Learn Fiqhul Muamalat’, ‘Waqf’ and ‘Shariah Board in Banks and Financial Institutions’, ‘Unified Shariah Manual on Islamic Banking’. INSTANT TRANSLATING INTERNATIONAL SEMINAR/CONFERENCE
Central Shariah Board conducts interpretation (instant translation) from Arabic/English to Bangla for international conferences. Two Seminars/Conferences are: ‘AAOIFI 18th Annual Shari’ah Boards Conference-2020’, and ‘15th International Shariah Scholar Forum (ISSF2020)’ organized by ISRA, Malaysia. VISITATION OF MEMBER BANKS
To enhance Islamic banking activities in Bangladesh, a board delegation visits the member banks and exchanges views with higher authorities of the banks. TRAINING AND WORKSHOPS ON ISLAMIC BANKING & FINANCE
To arrange training courses and workshops on Islamic banking and finance for the executives of different banks and teachers of colleges, universities, madrasahs, muftis, imams, and khatibs of masjids is one of the significant functions of CSBIB. A total of 3000 trainees benefited from 31 training courses and 28 workshops arranged by CSBIB. PUBLICATION OF JOURNAL, BULLETIN, AND BOOKS
CSBIB publishes a research journal named “Islamic Banks Central Shariah Board Journal”. To make Islamic banking activities familiar and to circulate Islamic banking and finance-related news, the CSBIB publishes a bulletin named “Islamic Finance”. CSBIB has published a good number of books in Bangla. Some of them are entitled “Shariah Board in Islamic Banks and Financial Institutions”, “Islamic Banking System”, “Poverty Alleviation in Islam”, “Murabaha in Islamic Banking”, “Shari’ah Compliance in Islamic Banking: Does and Don’ts”, “Murabaha Investment in Islamic Banking: Obligation Versus Reality”, and “Interest based on the Quran and Sunnah”. ARRANGEMENT OF MEETING TO EXCHANGE VIEWS
CSBIB holds meetings to exchange views from time to time. It aims at unifying the rows of the Faqihs (experts in jurisprudence) who are members of Shariah supervisory boards of the Islamic Banks functioning in the country. In the meantime, most of the Faqihs have agreed that such meetings are fruitful in promoting their standard, making similar decisions on banking issues, and being acquainted with juristic opinions relating to various contemporary banking issues. ARRANGEMENT OF WORKSHOPS JOINTLY
An Islamic Finance and Banking Workshop was organized under joint auspices of the Central Shariah Board and International Institute of Research on Islamic Finance, Dhaka University Branch. Similarly, a workshop on Islamic microfinance was jointly organized by CSBIB and Islamic Relief UK, and CSBIB and Green Delta Capital jointly organized a workshop on Sukuk. GENERAL SECRETARIAT
The General Secretariat of “Central Shari’ah Board for Islamic Banks of Bangladesh (CSBIB)” is located at Oriental Trade Center, 69/1, Purana Paltan Line, VIP Road, Kakrail of Dhaka city. Board’s Secretary General is its Chief Executive. A good number of researchers, officers, and employees are engaged in the daily activities of the General Secretariat under his supervision. There is an enriched library here with over two thousand books and booklets on Islamic economics in Bangla, English, Arabic, and Urdu.
