Collaborative approach key to restoring confidence

Mosleh Uddin Ahmed
Managing Director
Shahjalal Islami Bank

Shahjalal Islami Bank (SJIB) has been providing exceptional customer service in offshore banking since 2008. Our Offshore Banking Unit (OBU) has maintained sustainable positive growth since 2011, fostering trust among our customers. Many individuals are showing interest in our offshore banking accounts.

We are receiving a good response from expatriates, who are beginning to trust Shahjalal Islami Bank in the same way that local customers do. Investors are attracted to SJIB due to our financial strength, excellent customer service, transparency, accountability, administrative skills, and good governance.

Our OBU offers current, savings, and term deposit accounts under Islamic Shariah for non-resident Bangladeshis (NRBs), foreign individuals not residing in Bangladesh, and companies registered and operating outside Bangladesh. Non-resident individuals or institutions investing in Bangladesh can also open offshore accounts in the names of their designated residents under the International Bank (IB) account.

We do not face liquidity crises in either local or foreign currency. Expatriates may return their funds in foreign currency (FCY) or encash them in Bangladeshi Taka (BDT) at any time. We offer attractive provisional rates of return, which are completely tax-free. No charges, including excise duty, will apply to our OBU deposit accounts.

The recently finalized law on the offshore banking system in Bangladesh is expected to further encourage foreign investment by increasing the country's foreign exchange inflows and alleviating the reserve and letter of credit (LC) opening crises. This law was necessary as the offshore banking system plays a positive role in aligning with the international financial system.

Overall, it can be said that there is a crisis of confidence in the country's banking sector. If the main problems are identified at the policy-making level and appropriate measures are taken, we hope this crisis will be resolved soon. Arrangements should be made to recover irregularly taken investments and loans, with strict enforcement of banking laws providing significant benefits in this regard. We believe that a joint initiative from all stakeholders will help overcome the crisis of confidence among expatriates in the country's banking sector.

Bangladesh Bank must establish a robust regulatory framework covering areas such as licensing, supervision, reporting requirements, and risk management. Necessary financial infrastructure should be developed to ensure that offshore banking operates effectively.

The central bank can facilitate business dialogues and campaigns with expatriates to promote offshore banking. Effective engagement with all Bangladeshi embassies will also enhance offshore banking operations.