Comparison Between rules & regulations of Shahjalal Islamic Bank Limited & City Bank Limited

Abstract

This report has been prepared as part of the requirements for completing the BBA program. Throughout the report, I have strived to offer a clear and detailed comparative analysis of the rules and regulations between Shahjalal Islami Bank Limited (SJIBL) and City Bank Limited. Shahjalal Islami Bank operates with the mission of establishing an equitable society grounded in the principles of social justice, closely adhering to its rules and regulatory policies when managing customer accounts. On the other hand, City Bank follows a more customer-centric approach, shaping its policies according to the guidelines set forth by the regulatory framework in Bangladesh. Islamic banks, including Shahjalal Islami Bank, are governed by a set of financial practices aligned with the principles of "Islamic Shariah," which prohibits interest-based transactions. In my study, I focused on the regulatory issues faced by customers of both Shahjalal Islami Bank and City Bank. A significant challenge for SJIBL is the absence of a comprehensive regulatory and supervisory framework that fully supports its adherence to Shariah principles. Additionally, the absence of an interbank Islamic money market, coupled with the uniform policies applied to both conventional banks like City Bank and Islamic banks like SJIBL, presents challenges. Further issues include a discriminatory legal reserve requirement, a restrictive sales environment for customers, and the lack of adequate legal protection and support from Bangladesh Bank, which increases the risks associated with Islamic banking. To address these concerns, it is recommended that Bangladesh establish an independent banking act specifically designed for Islamic banks. This act would oversee, guide, and supervise their operations, ensuring adequate legal protection and support for all stakeholders involved. The report is divided into several chapters. The first chapter provides an introduction to the study, while the second chapter & the third chapter gives an overview of Shahjalal Islami Bank Limited & City Bank Limited, including its corporate profile and organizational structure. The fourth chapter gives an overview of principles of Shahjalal Islamic Bank Limited and City Bank Limited. The fifth chapter focuses on comparing the rules and regulations between Shahjalal Islami Bank Limited and City Bank Limited. In the Sixth chapter I present the ratio analysis of Shahjalal Islami bank Limited of Five (05) Years. In the Seventh chapter, I present my findings and recommendations based on the analysis, and concludes the report. Throughout this report, I have highlighted the key differences in the regulatory frameworks of the two banks, and in the final section, I offer insights into consumer investment in Shahjalal Islami Bank Limited and evaluate the overall performance of my study.