Monitory and Fiscal Policy in Bd

Banking plays an important role in the economy of any country. In Bangladesh Muslim is more than 80% of its population. These people possess strong faith on Allah and they want to lead their lives as per the constructions given in the holy Quran and the way shown by the prophet Hazrat Muhammad (Sm). But no Islamic banking system was developed here up to 1983 The Traditional banking is fully based on interest it is commonly meant as commercial banks. But interest is absolutely prohibited by Islam. As a result the people of Bangladesh have been experiencing such a non-Islamic and prohibited banking system against their normal values and faith. Bank is a nothing but a financial intermediary. Bank works as a bridge between the depositor and the investment seeker or loan taker. The investment or loans that are sanctioned by the banks are the most managing issue for the management of bank. Proper selection of client, choosing appropriate investment option for alternative, bringing back the invested money to the bank with profit are the core investment related work. If this jobs are functioned properly a bank can earn sufficient profit to satisfy its depositors and also for the shareholders. The banks that are regulated according the Islamic Shari’ah they operate their investment operation on the basis of profit and loss sharing. While the conventional banking system sanction loan on the basis of interest. That is why there are always observation prevails whether the Islamic banking system is doing well or conventional banking system performing better jobs. Naturally there are some specific difference prevails between the investment operation of Islamic banks and conventional banking system. From the context of our country Islamic Banks are doing good job comparing with the conventional banking system. Islamic banks are searching for Shari’ah approved sectors and bringing out smart profit. Among all the banks Islami Bank Bangladesh Limited is doing the finest job in our...