CONCLUSION
Islamic banking is premised on some basic tenets and ideologically ingrained in PLS. By adhering to this core approach Bangladesh theoretically endorsed Islamic banking in the mid-1980s and made significant progress in facilitating the investment growth and portfolio diversification.
IBS have already established their dominant presence with a substantial share increase in the financial market and a growing acceptance of the people. Yet, the way in which IBS function has fuelled a widespread controversy and raised serious doubt about the genuineness of their Shari’ah-compliance. The foregoing discourse demonstrates that the excessive use of Murabaha, pervasive influence of conventional banking on their competitive attitude and disregard of PLS are crucial factors that plague IBS' financial culture which unquestionably undermines the credibility and integrity of the whole financial system of Islamic banking.In addition, the implementing mechanism of IBS suffers from some important shortcomings. The absences of SSB at the central level with appropriate authority and a specific law on IBS have evidently impaired the effective operation and compliance of IBS in accordance with Shari'ah. This phenomenon is neither supportive of fostering an independent, responsible and transparent IBS governance essential for effectively guiding banking practices nor of sustaining religious and moral values on which these are fundamentally entrenched. Hence this
Business in Islam 177 note recommends the reconstruction of IBS in Bangladesh to achieve the true objectives of Islamic banking. The reconstruction can be accomplished via inter alia, integrating those key features such as activating PLS as mandated by Shari’ah, the introduction of a SSB with a binding authority at the central level and a specific law exclusively designed to regulate and monitor IBS’ practices. Sensibly this will not only liberate Islamic economics from inappropriate/counterfeited business conduct but also save the ‘captive’ clients from being financially deceived and religiously bankrupted.
7.