Islamic Banking Operation: A Study of Islamic Banking and It’s Performance In Bangladesh

Abstract

In wheel with the worldwide rapid growth of Islamic banking, Bangladesh has intimate extraordinary growth in Islamic banking following strong public demand for the system. Since beginning in 1983, the Islamic banking system has recorded strong performance. Based on the deposits and investment the industry currently accounted for over twenty percent market share of the whole banking industry in Bangladesh, although the Islamic banking industry in Bangladesh has achieved over 20 % annual growth. The aim of this paper is to measure the performance of Islamic Banks of Bangladesh. For this study, required information or data are collected from the secondary sources and eleven regression equations are tested for various activities of the Islamic banks and square of coefficient of correlation (r2) has conjointly been tested for all regression equations. It’s determined that all Islamic banks can accomplish a stable growth and square of the coefficient of correlation (r2) is positive, in several cases more than 0.90. It indicates the prospect of Islamic banks in Bangladesh is extremely bright.