This document presents an overview of the Islamic Development Bank (IDB), including its structure, functions, objectives, and relationship with member countries such as Bangladesh. It details the IDB's history, loan disbursement procedures, collaboration with other financial institutions, and limitations faced by the organization. The IDB aims to promote socio-economic development and cooperation among member nations while adhering to Islamic financial principles.

1. Welcome to our presentation

2. Name
Reg. No.
Sushanta Roy 2013237067
Iftekhar Robin 2012237045
3237067
Farzana Salsabil 2013237067
Ebadur Rahman 2013237072

3. • To know the structure & function of IDB
• To know Loan disbursement procedure
• To know about IDB & Bangladesh
• To know about IDB with World Bank & others
• To know the Limitation about IDB
Objectives of the Study

4. Basic Information
Founded : July 1975
Type : Islamic Financial Institution
Headquarters : Jeddah, Saudi Arabia
Membership : 57 countries
President : H.E. Dr. Bandar Hajjar

5. Historical background
Islamic banking Egypt 1963
IDB OIC 1974
Several Islamic banks Existence 1970s
Islamic financial
institutions
Occurred 1980s.
The Accounting and Auditing
Organization for Islamic
Financial Institutions (AAOIFI)
1990sEstablished

6. Function
•
Period
Conference of Ministers of
Muslim Countries
Formally opened
The Inaugural Meeting
of the Board of Governors July 1975
December 1973
20 October
1975

7.  The prospective member country should be a member
of the Organization of the Islamic Cooperation (OIC)
 Must have to subscribe and pay its contribution to the
capital of the Bank
 Must have the willing to accept such terms and
conditions as may be decided upon by the IDB Board
of Governors.

8. Objectives of the IDB
• To conduct Interest free economic transaction
• Poverty alleviation and promotion of Islamic
financial institutions.
• Promotion of cooperation among member
countries

9. Vision & Mission
Vision
• Socio-economic development in member
countries and Muslim communities
• Development in non-member countries
• in conformity with Shari’ah.
Mission
• alleviating poverty; promoting human
development;
• enhancing cooperation amongst member
countries,
• collaboration with their development partners.

10. Functions of IDB
To Invest in economic and social infrastructure project
in member countries
To make loan to the private and public sector for the
financing of productive projects.
 To assist in the promotion of foreign trade.
To provide technical assistance to member countries.
To undertake research for economic growth for
member countries.

11. Structure of IDB
Board of Governors
Board of Executive Directors
A President
One or more Vice-President
officers and staffs

12. Board of Governors: Powers
Admit new
members and
determine the
conditions of
admission.
Elect the
executive
directors of
Bank.
Elect the
President of
Bank.
Increase or
decrease the
capital stock
of Bank.

13. Board of Executive Directors
• BED is composed of eighteen members .
• Nine Executive Directors appointed by their countries
which are the main shareholders, while
• Nine others are elected by the Governors of other
countries.
• Responsible for the direction of the general operations
and policies of the Bank.
• The term of office is renewable in a period of three
years.

14. Requirements for President post
The
President
The term of
office of
President shall
be 5 years.
He must be a
citizen of
member country
of IDB
The President
shall be the legal
representative of
the Bank.

15. Disbursement Procedure for loans
• Loan on interest free
• Project loans with priorities in recipient country.
• Program loan, Bank must measure the wellbeing of people
of recipient country.
• Operations are on a profit and loss share basis (PLS) in
reality.
• The Bank charges a service fee to cover administration
expenses.

16. IDB & BANGLADESH
• IDB’S Bangladesh representative is Finance
Minister
• Fuel Oil Agreement (5.5 interest rate)
• Ashuganj Power Plant Agreement 220 million
• Fast Internet Service 351 core Tk (6% interest
rate)
• Rural Housing Project of Bangladesh 373 core
tk etc.

17. Relation with WB & Other Bank
• So far, IDB and the WB have co-financed over
60 projects in 26 countries in Africa, Asia, and
the Middle East worth $3.2 billion
• With ADB proposed $250 million Asia
Infrastructure Fund and projects.
• With UNDP achieving SDG goals project

18. Limitation(Continue…..
• A massive contrary to their strategy
• Aid is highly depend on Saudi Arab’s self interest
• Lack of external NGOs
• IDB is known to have funded several projects related to the
U.S.-terrorist designated Hamas and the Muslim Brotherhood.
• American Islamic Relations (CAIR), Council ties with Hamas
• IDB has financed projects by the Islamic Society of North
America (ISNA)
• Donated with the Boston Marathon bombings in 2013

19. Limitation
• Unfamiliarity with Islamic banking system.
• To get loan from IDB, there is needed guaranty
from government.
• Lack of Technical mechanism.

20. Reference
• Meenai S.A. (2013 )Islamic Development
Bank,Retrived From http/.books.google.com
• Islami Bank,Bangladesh.(2008),Islamic Development
Bank, A critical Analysis.
• Alan c.(2014),The Facade of Evaluation at the Islamic
Development Bank.
• https://counterjihadreport.com/tag/islamic-
development-bank-idb/
• Daniel P.(2005), CAIR Founded by "Islamic Terrorists"?
• Wikipedia
• Paper Cut From Daily Newspaper.