Superiority of Islami Banking for Sustainable Development

Superiority of Islami Banking for
Sustainable Development

Title: Internship Group Assignment-ll
Group Number: 03
Submitted to:
Hosne Ara
Internship Coordinator
Islami Bank Training and Research Academy (IBTRA)
Submitted by: Group 03
Name ID
Jahid Khan Rahat 145159
Sadia Sultana Rima 145160
Jahidur Rahaman Joy 145190
Anika Nasir 145191
Rifah Tamanna Tabassum 145203
Submission Date: 25th March, 2021.

Letter of Transmittal
24th
February, 2021
Director General
Islami Bank Training and Research Academy (IBTRA)
13A/2A Babar Road, Block # B,
Mohammadpur, Dhaka-1207
Bangladesh.
Subject: Submission of internship assignment-ll
Dear Sir/Ma’am,
In terms of the requirement of the internship, we have the pleasure to forward herewith our
assignment on “Superiority of Islami Banking for Sustainable Development”. We tried our best
to follow your guidelines and direction. We use our knowledge what we learn during the
internship classes and practical experience on Islamic Bank. We hope that it will meet your
expectation and standard of judgement.
Thank you for your kindness and co-operation throughout the internship period. Consider our
limitation on this work with your kindness.
Yours sincerely,
Name ID
Jahid Khan Rahat 145159
Sadia Sultana Rima 145160
Jahidur Rahaman Joy 145190
Anika Nasir 145191
Rifah Tamanna Tabassum 145203

Acknowledgement
We are thankful to Almighty Allah that He blessed us to complete this internship assignment
on “Superiority of Islami Banking for Sustainable Development” with efficiency and finish it
on time. We would like to give our sincere gratitude to our respectable internship supervisor
Hosne Ara, Internship Coordinator, Islami Bank Training and Research Academy (IBTRA) for
his guidance and supervision to complete this assignment on “Superiority of Islami Banking
for Sustainable Development”. Our all-team members had work hard and assisted each other
during the preparation of this assignment. So, we would like to thank all of our team members
for their effort.

Abstract
This study aims to unveil the bank’s attitude towards sustainable development of Islamic Bank.
In Bangladesh there is mainly two categories banking system that is Islamic Banking system
and conventional Banking system. Each bank has different sustainable development and
corporate responsibility policy. Islami Bank is based on Sharia. So, they invest on the corporate
responsibility more than conventional bank. As a result, it helps to achieve SDGs goal of
Bangladesh. Bangladesh target that in 2030 it will achieve 17th
SDGs. In this research we
investigate the relationship of Sustainable Development and IBBL corporate responsibility. We
used secondary research method in completing this relationship of which we collect qualitative
data from different sources.
Keyword: Sustainable Development, Environment, Corporate responsibility, Islami Bank.

Table of Contents
1.0 Introduction ..................................................................................................................................................... 1
1.1 Background of Islami Bank Bangladesh Limited (IBBL)................................................................................. 1
1.3 Mission ......................................................................................................................................................... 2
1.4 Vision............................................................................................................................................................ 3
2.0 Research Objective ......................................................................................................................................... 3
2.1 Research Question ................................................................................................................................... 3
3.0 Methodology ................................................................................................................................................... 3
3.1 Data Collection ............................................................................................................................................. 4
3.2 Data Type ..................................................................................................................................................... 4
3.3 Target Source ............................................................................................................................................... 4
3.4 Time frame .................................................................................................................................................. 4
3.5 Reliability and validity .................................................................................................................................. 4
3.6 Ethics and principles..................................................................................................................................... 4
4.0 Introduction of Sustainable Development...................................................................................................... 5
5.0 IBBL & Sustainable Development in Bangladesh ......................................................................................... 15
5.1 No Poverty (IBBL Create job and it helps remove poverty)........................................................................ 16
5.2 Zero Hunger (Invest food industry and provide food at reasonable price, Provide Zakat)........................ 17
5.3 Good Health and Well-being (Employee’s health care) ............................................................................. 19
5.4 Quality Education (IBTRA provide training students and employees): ...................................................... 20
5.5 Clean Water and Sanitation ....................................................................................................................... 21
5.6 Decent Work and Economic Growth.......................................................................................................... 22
5.7 Industry, Innovation and Infrastructure:.................................................................................................... 23
5.8 Sustainable Cities and Communities ......................................................................................................... 24
5.9 Responsible Consumption and Production ............................................................................................... 24
5.10 Peace and Justice Strong Institutions ...................................................................................................... 25
6.0 Limitation of the study .................................................................................................................................. 26
6.1 Time limited ............................................................................................................................................... 26
6.2 Resources limited ...................................................................................................................................... 27
6.3 No sufficient data ...................................................................................................................................... 27
6.4 Hypothesis research .................................................................................................................................. 27
6.5 Limited scope for study ............................................................................................................................. 27
14.0 Recommendation ........................................................................................................................................ 27
15.0 Conclusion.................................................................................................................................................... 28
16.0 References ............................................................................................................................................29

1.0 Introduction
Banking sectors are considered as the backbone of an economy. In the same way, there are
several types of banks (Conventional, Islamic, Specialized) in Bangladesh. Of these banks,
Islamic banks are in growing position in our country. Most of the people in our country are
Muslims, they prefer to deposit and take loans from the Islamic banks in the sense of Islam. As
a result, we try to find out Shariah based banks’ performance in Bangladesh. However, in this
assignment we will cover both Islamic Bank and Conventional Bank investment system in
Bangladesh. So, we will discuss Shariah based investment management and interest-based
investment management. As we did our internship in Islami Bank Bangladesh Limited (IBBL)
we have to discuss a little bit about the Islami Bank Background and its mission-vision.
1.1 Background of Islami Bank Bangladesh Limited (IBBL)
Islami Bank Bangladesh Limited (IBBL) is an Islamic banking company based in Bangladesh.
(Wikipedia, 2021). It became incorporated on 13 March 1983 as a public limited company
under the Companies Act of 1913. It was founded by Saudi and Kuwaiti investors. IBBL is a
joint venture of the government of Bangladesh, 22 businessmen of Bangladesh, Islamic
Development Bank, and investment firms and banks from Muslim Middle Eastern countries.
It has 36.91% local and 63.09% foreign shareholders. The bank has large network with others
bank. The additional information is given on following table:
Basic Overview
Type of Bank Public limited company
Establishment Year 13 March 1983
Established by Saudi and Kuwaiti investors
Head Office Islami Bank Tower 40, Dilkusha C/A,
Dhaka - 1000, Bangladesh
Number of employees 14,000
Website www.islamibankbd.com
Number of ATM Booth 621
Number of Branch 350
Listed Both DSE and CSE
1.2 Mission
A Mission Statement defines the bank’s business, its objectives, and its approach to reach those
objectives. In this section we will explore Islami Bank Bangladesh Limited (IBBL) mission.
As a result, we can know about the objective of bank and approach to reach those objectives.

Vision of IBBL is to always strive to achieve superior financial performance, be
considered a leading Islami Bank by reputation and performance.
⚪ Goal of IBBL is to establish and maintain the modern banking techniques, to ensure
the soundness and development if the financial system based on islami principles and to
become the strong and efficient organization with highly motivated professionals,
working for the benefit of people, based upon accountability, transparency and integrity
in order to ensure the stability of financial system.
⚪ IBBL will try to encourage saving in the form of direct investment.
⚪ IBBL will also try to encourage investment particularly in projects, which are more
likely to higher employment.
Page 2
1.3 Vision
A Vision Statement describes the desired future position of the Bank. Elements of Vision
Statements are often combined to provide a statement of the Bank’s purposes, goals, and
values. IBBL and EXIM Bank vision statement is given below:
• To establish Islami Banking through the introduction of a welfare-
oriented banking system and also ensure equality and justice in the
field of all economic activities, achieve balanced growth and equitable
development through diversified investment operations particularly in
the priority sectors and less development areas of the country. To
encourage socio-economic enlistment and financial services to the
low-income community, particularly in the rural areas.
Islami Bank
Bangladesh
Limited

2.0 Research Objective
To investigate the Superiority of Islami Banking for Sustainable Development in Bangladesh
and its environmental impact.
2.1 Research Question
a. How IBBL achieve Sustainable Development Goal SDG’s?
b. Why achieving sustainable development goal is important to the country?
c. What is the role of government to impose a decent SDG’s policy in our country?
d. How can a bank invest in a profitable project without make harm to the environment?
e. What is the limitation for achieving SDGs in our country?
3.0 Methodology
Basically, this study is descriptive, analytical, and experiential in nature. We will execute this
research using secondary data analysis. This defines the initial study plan of the motion study.
It provides information to solve the study questions of strategies. The branch justified the
strategy to be followed for engaging in studies. The research mainly focuses on secondary data
sources. This research also collects information from newspaper, journal articles and research
papers.
In this research will be followed mixed methods as we will collect data from conducting survey
and the interview. So, both qualitative and qualitative data will be collected to conducting the
research. The survey will be providing quantitative data and interview will be provided
qualitative data.
Primary
Data
Secondary
Data
• Interview
• Questionnaire
• Newspaper
• Journals Article
• Research Paper

3.1 Data Collection
Due to COVID-19 pandemic situation the research mainly focuses on secondary data sources.
On the other hand, the research obligation is realizing the awareness of people about sustainable
and environmental impact. So, a questionnaire was prepared collecting information from
general people. As a result, this research also collects information from primary sources. The
research also includes expert opinion that is collecting by way of interview sessions.
3.2 Data Type
The research has based on both qualitative data and quantitative data.
3.3 Target Source
Interviews was taken by applying phone call. Around 10 to 15 people were interviewed,
including university friends, family members and people around my house. Survey information
was collected by using Facebook Messenger.
3.4 Time frame
It requires around 25 days for conducting the research.
3.5 Reliability and validity
The data collection procedure is completely biased less. Due to COVID-19 situation the
research question was asked only selective person. It is a big limitation of the research.
3.6 Ethics and principles
The identities of interviewees are not disclosed in this research papers. The data is only usedfor
academic purpose.
Data
Qualitative Quantitative

4.0 Introduction of Sustainable Development
In few words, sustainable development is a way of organizing society so that it can exist in
long term. The most frequently quoted definition of sustainable development is from the
Brundtland Report: “Sustainable development is development that meets the needs of the
present without compromising the ability of future generations to meet their own needs”
(United Nations Report of the World Commission on Environment and Development: Our
Common Future, 1987). (Department of Economic and Social Affairs, n.d.).
Sustainable development actually refers an approach of developing or growing by using
resources in a way that allows for them to renew or continue to exist for others. Like, using
recycled materials or renewable resources when building or making anything.
Here are some popular examples of Sustainable Development-
Solar Energy
The greatest advantages of solar energy are that it is
completely free and is available in limitless supply.
Both of these factors provide a huge benefit to
consumers and help reduce pollution. Replacing non-
renewable energy with this type of energy is both
environmentally and financially effective.

Wind Energy
Wind energy is another readily available energy source. Harnessing the power of wind energy
necessitates the use of windmills; however, due to construction cost and finding a suitable
location, this kind of energy is meant to serve more than just the individual. wind energy can
supplement or even replace the cost of grid power, and therefore may be a good investment
and remains a great example of sustainable development.
Crop Rotation
Crop rotation is defined as “The successive planting of different crops on the same land to
improve soil fertility and help control insects and diseases.” This farming practice is beneficial
in several ways, most notably because it is chemical-free. Crop rotation has been proven
maximize the growth potential of land, while also preventing disease and insects in the soil.
Not only can this form of development benefit commercial farmers, but it can also aid those
who garden at home.

Efficient Waster Fixtures
Replacing current construction practices and supporting the
installation of efficient showerheads, toilets and other water
appliances can conserve one of Earth’s most precious resources:
Water. Examples of efficient fixtures include products from the EPA’s
Water Sense program, as well as dual flush and composting toilets.
According to EPA, it takes a lot of energy to produce and transport
water and to process wastewater, and since less than one percent of
the Earth’s available water supply is freshwater, it is important that
sustainable water use is employed at the individual and societal level.
Green Space
Green spaces include parks and other areas where plants and wildfire
are encouraged to thrive. These spaces also offer the public great
opportunities to enjoy outdoor recreation, especially in dense, urban
areas. According to the UW-Madison Department of Urban and
Regional Planning, advantages of green spaces include, “Helping
regulate air quality and climate reducing energy consumption by
countering the warming effects of paved surfaces recharging
groundwater supplies and protecting lakes and streams from polluted
runoff.” Research conducted in the U.K by the University of Exeter
Medical School also found that moving to a greener area could lead to
significant and lasting improvements to an individual’s mental health.
Eco-Friendly Aesthetics
Louvers help to minimize air moisture intrusion, air pollution, and noise pollution in a building
or home. Eco blinds from Blindsgalore are made from eco-friendly materials like reed, jute,
bamboo, or sustainable harvested wood.

Sustainable Development Goals
The Sustainable Development Goals are a set of 17 goals set out by the UN (United Nations)
and adopted by all United Nations member states.
“A blueprint to achieve a better future for all” – (United Nations)
Working Together for a Better Future-
What?
The Sustainable Development Goals are a plan of action, to target and resolve the challenges
we’re facing on the planet. They are not just about the environment (as the world
‘sustainability’ can sometimes suggest), they encompass much more than that, with goals
targeting issues such as gender equality, poverty and peace.
When?
The goals were laid out at the UN Sustainable Development Summit 2015. They are a global
effort and each of the countries in the United Nations has committed to achieving the goals
by the set year- 2030. Each year there is a follow up at the High-Level Political Forum on
Sustainable Development. (Open Working Group proposal, n.d.)
Why?
The purpose of SDGs is to encompass the following topics seen as critical to humanity and
the planet:
People -Aim to end hunger, poverty and equality in a healthy environment.
Planet - Improve the management of natural resources and protect the planet.
Prosperity - Ensuring we all have fulfilling lives and that developments are made in
harmony with nature.
Peace - Societies that are free from fear and violence.
Partnership - Mobilizing the means to achieve the goals through a global partnership

17 Sustainable Development Goals:
Goal 1 : No Poverty
Whilst extreme poverty has been decreasing on a global level, the
progress has begun to slow down, which means the UN are concerned
that we are not on track to reach this goal by 2030. The target is to
hit less than 3% of the world living in extreme poverty. In 2018, 8%
of the world’s workers still lived in extreme poverty. There is a need
to scale services addressing this issue.

Goal 2 : Zero Hunger
Unfortunately, hunger is rising globally, with millions affected. There
is a desperate need for further investment in the technology and
infrastructure required to achieve the goal, which aims to allow food
security and end hunger.
Goal 3 : Good Health and Well-being
The goal aims to better promote wellbeing and health amongst all age
groups, and has seen some encouraging results in the past few years such
as reducing child mortality and fighting against disease. However, a great
deal more work is needed to ensure better access to health care, with
prevailing issues relating to pollution of the air, mental health and
sanitation.
Goal 4 : Quality Education
The fourth SDG addresses access to quality lifelong learning to all groups.
We have made positive movement in the right direction, however there is
still a lack of access for marginalized groups, women and girls.
Developing countries are still missing vital infrastructures to provide
learning.
Goal 5 : Gender Equality
The heart of the goal empowering women and girls and gender equality,
has seen a strong movement toward positive outcomes (such as the
decrease of practicing child marriage, improved gender equality laws),
much work is left to do though. Addressing discriminating social norms,
low-level political involvement and other structural issues at play will be
needed to reach this goal.
Goal 6 : Clean Water and Sanitation
Targeting sanitation, sustainable management of water and its availability
to all, this goal is proving difficult to achieve, with the latest data
suggesting that we would need to double the annual efforts. Billions are
still lacking safe water.

Goal 7 : Affordable and Clean Energy
With this goal, aiming at giving access to reliable and sustainable energy
sources to all, we have seen an increase in renewable energy usage,
however, 800 million still do not have electricity and we require much
greater ambitious and investments to achieve this goal, as well as the
closely linked climate goal.
Goal 8 : Decent Work and Economic Growth
This goal exists to underpin the efforts and progress toward achieving the
other goals, emphasizing sustainable and inclusive economic growth and
employment. More importantly, this goal aims to ensure decent work,
with safe environments, as well as eradicating gender pay gaps and
increasing employment opportunities.
Goal 9 : Industry, Innovation and Infrastructure
The ninth SDG, targets building solid infrastructures that encourage
innovation and that are sustainable and inclusive key drivers like transport
and communication play a vital role here with the aim to support
economic development through innovative solutions. Nonetheless,
investment in this sector remains below the global average.
Goal 10 : Reduced Inequalities
As the title suggests the goal is to reduce inequality, with particular focus
on the disproportion of opportunities, income and power. An increasing
share of income remains with the top 1% of earners causing concern for
progress towards this goal, more work is required to increase zero tariff
exports foe developing countries among other actions.
Goal 11 : Sustainable Cities and Communities
With the aim to make human settlements safe, inclusive and sustainable,
this goal addresses living situations such as slums, access to transport,
clean air and waste collection to name just a few topics. But recent data
suggests many urban areas are growing faster than the populations
themselves, which will have consequences when it comes to
sustainability.

Goal 12 : Responsible Consumption and Production
Over extraction of resources, degradation of natural resources, waste, and
improving sustainability factors need to be considered and improved in
order to achieve the responsible consumption and production goal. The
realization of this goal is far from encouraging with material consumption
expanding rapidly.
Goal 13 : Climate Action
The goal that often gets the most airtime, climate action, puts the
spotlight on the increasing greenhouse emissions, climate change and the
associated impact. Despite the media coverage, the situation is not rosy.
Even with the Paris Agreement in place, suggesting a revitalized course
toward achieving the goal, (signed back 2016), drastic action is still
required to mitigate greenhouse gases, in the form of finance, reforms
and much more.
Goal 14 : Life Below water
Specially relating to life ‘under the sea’ this goal is focused on conserving
and sustainably utilizing our oceans, seas and marine resources. As it
stands there are inadequate measures in place to do so, thus, overfishing,
acidification from climate change and coastal eutrophication (the loading
of unneeded ‘nutrients’ into the water by upstream activities, namely
agriculture and other industries) continue to move us further away from
this goal.
Goal 15 : Life on Land
With deforestation often making the news, land degradation like
desertification (which occurs largely due to deforestation, drought or
agriculture) countries, and loss of biodiversity has increased, alongside
other concerning issues like wildlife poaching and animal extinction. So,
whilst protection of these vital areas of land has increased many
ecosystems are still suffering.

Goal 16 : Peace, Justice and Strong Institutions
This SDG focuses on building institutions that are inclusive,
promoting peaceful societies that are able to be sustainably developed.
This goal is yet to be achieved with great consistency, international
homicide is on the rise, violence against children continues, so all
efforts need to be accelerated to reach this critical goal.
Goal 17 : Partnerships for the Goals
SDG 17 is all about how the goals will be achieved through
partnerships, funding and initiatives. ODA (Official Development
Assistance – the funds given to help achieve sustainable development)
has actually decreased, with poor alignments to sustainable
development coming from private investment, a lot of work will be
required to mobilize the goals ambitions at the right level.
Bangladesh current position of achieving SDGs
UNDP has been closely engaged with the Planning Commission of Bangladesh to strengthen
alignment with the 7th
Five Year National Development Plan. 14 goals (82%) are thematically
fully aligned, while three goals (Goal 14, Goal 16 and Goal 17) of the SDGs (18%) and
remaining are partially aligned.
Bangladesh is one of the promising countries towards attaining SDGs on action to end poverty,
protect the planet and ensure that all people enjoy peace and prosperity by 2030.
Out of 17 SDGs, Bangladesh has made considerable progress on reducing extreme poverty
(Goal 1) measured by $1.90 a day or by national poverty line. In 2018, the proportion of
population living below the international poverty line (absolute poverty) was 11.3% compared
to 19.6% in 2010.
Bangladesh is moving steadfastly towards ensuring access of 100% households to electricity
well ahead of the target of (SDG 7) time in 2025; it reached 85.3% in 2017 (91% in 2018
December). Compared to other neighbouring countries of South Asia, the improvement in
sanitation and reduction in open defecation is impressive. Currently 87% of population has
access to safe water sources (Target 6.1) and 61% population has access to safe sanitation.
Access to improved sanitation improved by 26% while open defecation has reduced by 33%.
It is also noteworthy that the average annual growth rate of GDP per employed person has
already reached the 2020 target in FY2017.

Bangladesh has made an upward shift in the average annual growth rate (Goal 8) to 7% plus in
the recent years FY2015-2018 and estimated to attain 8.13% in FY2019. Bangladesh has also
made good progress in SDG-5 in recent times. The proportion of female members in the
parliament has been slowly increasing over time reaching 20.88% in 2019 which was 12.42%
in 2001. The situation of women empowerment and gender equality appears promising from
this perspective. In SDG-9, the share of manufacturing value added in GDP in the country has
been increasing significantly- exceeding the 2020 milestone in FY2017. In fighting against the
climate change issue (Goal-13), Bangladesh has made a reasonable progress by approving
Disaster Risk Reduction Strategies of Bangladesh (2016-2020) in line with the Sendai
Framework for Disaster Risk Reduction 2015-2030 and other international protocol ratified by
the Government of Bangladesh.
Bangladesh has recently gained a vast swath of marine territory (118,813 sq. km in total). This
marine area is rich in natural gas resources and biodiversity. Conservation and sustainable use
of these resources are essential for sustainable development (Goal 14). In order to protect its
very rich biodiversity, the country has taken many steps under SDG-15, among which some
are continuing moratorium on tree felling, declaring ECAs (Ecologically Critical Areas),
Creating special biodiversity zones and creating two vulture safe zones.
Achieving SDGs will critically depend on the availability of resources (including external
resources) and global partnership (Goal 17). Bangladesh government has emphasized the need
for enhanced international cooperation and support for achieving 62 of the 169 targets.
International community needs to provide adequate and timely support to Bangladesh to help
implement a comprehensive and all-encompassing development agenda like SDGs by 2030.
Future Plan of SDGs
The future of the world has been redesigned. The United Nations (UN), and by extension the
entire population of the planet, face an exciting challenge that seek nothing more, nothing
less, ensuring the sustainable development.

Sustainable Development Goals (SDGs) which is also known as Global Goals, were adopted
by all United Nations Member States in 2015 as a universal call to action to end poverty,
protect the planet and ensure that all people enjoy peace and prosperity by 2030. There needs
to follow some steps like-
A. Reducing pollution by using eco-friendly technology.
B. Restrain the use of natural resources to ensure availability for the future generations.
C. Protection of environment.
D. Social equality in accessing resources.
E. Continuous economic growth.
Bangladesh has adopted a people centred development approach under the visionary and
dynamic leadership of Honorable Prime Minister Sheikh Hasina. The initiatives taken by the
Government after VNR (Voluntary National Review) 2017 are as follows:
A. Preparing SDGs Action Plan with new projects and programmes.
B. Launching SDGs Tracker to monitor implementation in terms of indicator-wise data
updating.
C. Finalizing SDGs Financing Strategy which included updating of the financing needs
with an estimated additional amount of US$ 928.5 billion being required for the FY
2017 to FY 2030.
D. Convening the 1st
National Conference on SDGs Implementation Review participated
by representatives from the government, NGOs, CSOs, private sector, and DPs.
E. Forming National Data Coordination Committee to harmonize data generation.
F. Developing a framework of collaboration between the Government and the UN
agencies in Bangladesh.
G. Approving 40 priority indicators for localizing SDGs; 39 of them will reinforce the
implementation of the other indicators.
They attach much importance to meaningful international cooperation for attaining the
SDGs. Their efforts to implement the 2030 Agenda complement their endeavors to
achieve their national aspiration of becoming an upper middle-income country by 2031
and a develop country by 2041.
5.0 IBBL & Sustainable Development in Bangladesh
Dr. Md. Salim Uddin said that, the present government has completed several publications in
the implementation of the SDGs, which includes the identification of SDGs, GAP analysis,
funding strategies, monitoring and implementation guidelines and implementation strategies

for the seventh five-year plan. The task of identifying, measuring, publishing and implementing
17 activities of SDGs, 169 targets and 241 indicators has been going on fast, he added.
Meanwhile, the implementation of the SDGs in Bangladesh has been praised in the United
Nations High-level Political Forum (HLPF) on Sustainable Development. In the
implementation of this SDG, there are many challenges in Bangladesh including inadequate
financing, food security for the increased population, rapid urbanization, education and
employment system of 13 million population between 15 to 29 years, proper utilization of
resources, natural disasters and environmental disasters, skilled manpower, quality education
system, increased business expenditure and transaction costs. Above all, special attention is
needed in the above indicators along with ensuring good governance for achieving SDGs.
5.1 No Poverty (IBBL Create job and it helps remove poverty)
Bangladesh is one of the world’s most densely populated countries, with approximately 163
million people living within a relatively small landmass (FAO 2016; World Bank 2018b).
Considered a lower-middle-income country - it had a per capita GDP of $1,517 in 2017 -
Bangladesh experienced rapid GDP growth of 4–7 percent a year between 2000 and 2016.
During that period, the country’s poverty rate plunged from 34.8 percent to 14.8 percent.
However, poverty reduction in 2010–2016 was slower than in 2005–2010 (World Bank 2018b).
Since 2016, the Bangladeshi economy has faced formidable challenges, including above-
average flooding that has been detrimental to agriculture, increasing rice prices, governance
issues around the banking sector, and the influx of Rohingya refugees from Myanmar, of whom
nearly 900,000 are now in Bangladesh (UNHCR 2018b; World Bank 2018a).
Because of its densely populated, lowlying coastal landmass, it is also considered one of the
world’s most vulnerable countries to the effects of climate change and rising sea levels (Karim
and Mimura 2008).
The economy is fairly diverse: the service sector accounts for 56 percent of GDP, while
industry and agriculture account for 29 and 15 percent, respectively (World Bank 2018b).
Agriculture is an important source of livelihoods, representing 42 percent of total employment
(FAO 2016).
However, farmers face numerous challenges, including a lack of access to resources and
services, especially for women farmers; destructive weather events linked to climate change;
and population pressure that limits many farmers’ access to arable land (FAO 2016; World
Bank 2016).

Islamic bank helps to Rapid economic growth and increased agricultural productivity over the
past two decades has seen the proportion of undernourished people drop by almost half.
Its primary objective was to provide a capacity-building opportunity to participants by
strengthening their conceptual understanding of the evolving issues on the role of financial
intermediaries for poverty reduction and sharpening their skills in this area.
slamic bank gave almost 2-3million foods, shelter and living space for many poor people
Bangladesh unemployment rate for 2019 was 4.19%, a 0.09% decline from 2018. Bangladesh
unemployment rate for 2018 was 4.28%, a 0.09% decline from 2017. Bangladesh
unemployment rate for 2017 was 4.37%, a 0.02% increase from 2016. Bangladesh
unemployment rate for 2016 was 4.35%, a 0.03% decline from 2015.
IBBL creats jobs for unemployed people. Many unemployed people are now work in IBBL
and many projects that IBBL invest. IBBL creates almost 10-20thousands people jobs every
year.
5.2 Zero Hunger (Invest food industry and provide food at reasonable price,
Provide Zakat)
DHAKA – The United Nations World Food Programmed (WFP) is launching a new four-year
Country Strategic Plan (CSP) 2017-2020 designed to strengthen and support the Government
of Bangladesh in achieving the Sustainable Development Goal (SDG) of “Zero Hunger “by
2030.Islamic bank Invest in this project.
37%
18%
27%
18%
Food Job Shelter Treatment

Bangladesh is one of the world’s most densely populated countries; the size of Illinois,
Bangladesh has a population of 156 million people, half the population of the United States.
Despite recent progress out of poverty and increasing human development indicators such as
literacy and life expectancy, inequalities in income and consumption rates have increased
(UNDP 2005). 32% of the population lives below the national poverty line, most of whom are
women and children. The prevalence of child (under 5) malnutrition is 33%, one of the highest
in the world.
The disproportionate poverty faced by women and girls comes as a result of discrimination and
exclusion within Bangladeshi society, struggling to establish their rights and influence in
decision-making processes. Traditional practices such as dowries, child marriages and the
relegation of being last to eat have created a demeaning and dangerous sociopolitical context
for girls and women. (World Vision, 2014)
Following many years of political turmoil after independence in 1971, Bangladesh emerged as
a democracy in 1990. However today, Bangladesh suffers from political instability and
agitation, weak and dysfunctional governance and ‘institutionalized political violence’ (UNDP
2005). This climate has led to one of the highest concentrations of NGO activity in the world,
ranging from service delivery to community mobilization working with the poorest of the poor,
often marginalized within Bangladeshi culture.
Unfortunately, hunger is rising globally, with millions affected. There is a desperate need for
further investment in the technology and infrastructure required to achieve the goal, which aims
to allow food security and end hunger.
Bangladesh’s stability is further threatened by increasingly common environmental disasters,
and is extremely vulnerable to the effects of climate change. Furthermore, many Bangladeshis
above the poverty line do not have economic safety nets, and therefore could fall back into
poverty if they are struck by natural disasters or lose their jobs.
Islamic bank helps Bangladesh government to reduce this proverty problem. Islamic bank
every year donate almost 1million women, child, men and pregnant women nutrition foods.

5.3 Good Health and Well-being (Employee’s health care)
IBB has made great progress against several leading causes of death and disease. Life
expectancy has increased dramatically; infant and maternal mortality rates has declined for
their social investment. IBBL has been struggling to embrace employee wellbeing in the
workplace for a long time now. Employee wellbeing, employee happiness, employee
engagement, employee experience, employee satisfaction IBBL is very concern about its
employees’ health. Physical and Mental health, they always concern their employees stress,
fear and uncertainty in the workplace, has also been disrupted by the current pandemic. Also,
in Covid 19 situation they help third employees to remain fit and encourage them to Don office
from home for their health security. Finally, with social distancing and isolation restrictions,
IBBL ensures their employees’ health security.
50%
10%
20%
20%
Zero Hunger
Invest food industry food at reasonable price
Provide Zakat Women And Children Food

5.4 Quality Education (IBTRA provide training students and employees)
The principles and working procedures of Islamic Banks are completely new and different from
the conventional banks. There is an inevitable need for training of the employees of the banks
to orient and attune them to the new system of Islami banking. To cater to this need, Islami
Bank Training and Research Academy (IBTRA) was established in 1984, soon after the
inception of the Islami Bank Bangladesh Limited (IBBL).
The activities of IBTRA cover both training and research on various aspects of Islamic banking.
The Academy developed a rich library of its own with a treasure of valuable books on different
subjects including Islamic economics, banking, comparative philosophies and journals of home
and abroad and research articles and documents. Employees of the Bank, learners and
researchers have been taking full advantage of the library.
Keeping in view the existing and future training requirement of the Bank and also to generally
cater such needs of different Islamic banking & financial institutions of the region, the
management of Islami Bank Training and Research Academy has been placed at the disposal
of renowned academicians and faculties in the training of bank officials of the country.
The Academy conducts training courses and workshops for the officials of IBBL and other
Islamic Banks. The courses include Islamic Banking, Banking Law and Practice, Investment
40%
20%
20%
20%
Employees health care
Covid 19 Employee wellbeing
employee experience employee satisfaction

Operations and Management, Foreign Trade and Foreign Exchange, Shariah Based Audit and
Inspection, etc. Changes in the regulatory environment in Banking, adoption of Islamic Shariah
principles, adoption of tools and techniques and technology in the Banking operation, better
human resource management, global competition etc are the major consideration to design
training courses and workshops.
IBBL almost expense 50 lac yearly to train their employees.
5.5 Clean Water and Sanitation
Bangladesh, with a population of 150 million has made significant progress towards providing
water supply and sanitation in the last two decades. According to the JMP (WHO/UNICEF-
2014), 85% people have access to safe water and 57% people use hygienic sanitation facilities.
Bangladesh has made remarkable progress to in eliminating the practice of open defecation.
But climbing the ‘sanitation ladder’ still represents a challenge. Access to sanitation remains
moderate at 55.9 per cent. In Bangladesh, there is a high proportion of shared toilets particularly
in urban slums, Conventional sewerage systems are absent in all urban areas except Dhaka.
But even in the capital city, only 1 in 5 people are served by a sewer network. The safe disposal
25%
45%
15%
15%
Quality Education
training students training Employee
Banking operation, Islamic Shariah principles

of faucal matter generated in rural and urban areas is recognized as a major challenge by the
Bangladesh government.
Islamic bank helps government in this sector. In every year it's invests almost 1million in this
sector.
5.6 Decent Work and Economic Growth
Over the past 25 years the number of workers living in extreme poverty has declined
dramatically, despite the lasting impact of the 2008 economic crisis and global recession. In
developing countries, the middle class now makes up more than 34 percent of total employment
– a number that has almost tripled between 1991 and 2015.
However, as the global economy continues to recover, we are seeing slower growth, widening
inequalities, and not enough jobs to keep up with a growing labour force. According to the
International Labour Organization, more than 204 million people were unemployed in 2015.
The SDGs promote sustained economic growth, higher levels of productivity and technological
innovation. Encouraging entrepreneurship and job creation are key to this, as are effective
measures to eradicate forced labour, slavery and human trafficking. With these targets in mind,
the goal is to achieve full and productive employment, and decent work, for all women and
men by 2030. Islamic bank invests almost 1 million in this sector in every year.
30%
35%
25%
10%
Clean Water and Sanitation
Clean Water Sanitation
Swearage Facilities hygienic sanitation facilities

5.7 Industry, Innovation and Infrastructure
Investment in infrastructure and innovation are crucial drivers of economic growth and
development. With over half the world population now living in cities, mass transport and
renewable energy are becoming ever more important, as are the growth of new industries and
information and communication technologies.
Technological progress is also key to finding lasting solutions to both economic and
environmental challenges, such as providing new jobs and promoting energy efficiency.
Promoting sustainable industries, and investing in scientific research and innovation, are all
important ways to facilitate sustainable development.
IBBL focus on Develop quality, reliable, sustainable and resilient infrastructure, including
regional and transborder infrastructure, to support economic development and human well-
being, with a focus on affordable and equitable access for all.
For that every year it invests almost 2 million in these 3 sectors.
63%
16%
16%
5%
Industry, Innovation and Infrastructure:
Industry, Innovation Infrastructure Idea

5.8 Sustainable Cities and Communities
More than half of us live in cities. By 2050, two-thirds of all humanity—6.5 billion people—
will be urban. Sustainable development cannot be achieved without significantly transforming
the way we build and manage our urban spaces.
The rapid growth of cities—a result of rising populations and increasing migration—has led to
a boom in mega-cities, especially in the developing world, and slums are becoming a more
significant feature of urban life.
Making cities sustainable means creating career and business opportunities, safe and affordable
housing, and building resilient societies and economies. It involves investment in public
transport, creating green public spaces, and improving urban planning and management in
participatory and inclusive ways.
Islamic Bank invest al.ost 4-5 million every year in this sector.
5.9 Responsible Consumption and Production
There are some 300,000 buildings, featuring various industries within city limits and brick kilns
and tanneries in the peripheries. Motorized vehicles and the never-ending construction work
contribute to some of the worst air and water pollution rates in the world.
55%
25%
10%
10%
Sustainable Cities and Communities:
Cities Transport Roads Bridges

Residents and industries constantly abuse the city; overconsumption contributes to ecological
ruin. A report from 2011 states that the groundwater level in Dhaka has dropped by 6 metres
over a 7-year period. This is due to excessive withdrawal of groundwater to meet the needs of
about 19 million people and of resident industries. Inequality is an essential aspect of such
unsustainable practices: It is the overconsumption of the middle and upper class, which
contributes to Dhaka’s problems in water supply. Yet it is the poor and the slum dwellers who
are left with very limited access to clean water, and whose living environments are most badly
damaged Water supply is just one example of such dynamics. There are many other examples
such as waste of electricity in the name of ‘lighting’ the city by constantly illuminating houses
and shopping malls.
Islamic bank helps government to develop those conditions. For that islamic bank invest 1 million every year.
5.10 Peace and Justice Strong Institutions
We cannot hope for sustainable development without peace, stability, human rights and
effective governance, based on the rule of law. Yet our world is increasingly divided. Some
regions enjoy peace, security and prosperity, while others fall into seemingly endless cycles of
conflict and violence. This is not inevitable and must be addressed. Armed violence and
insecurity have a destructive impact on a country’s development, affecting economic growth,
and often resulting in grievances that last for generations. Sexual violence, crime, exploitation
40%
30%
15%
15%
Responsible Consumption and Production:
Consumption Production Water Elecctricity

and torture are also prevalent where there is conflict, or no rule of law, and countries must take
measures to protect those who are most at risk
The SDGs aim to significantly reduce all forms of violence, and work with governments and
communities to end conflict and insecurity. Promoting the rule of law and human rights are
key to this process, as is reducing the flow of illicit arms and strengthening the participation of
developing countries in the institutions of global governance.
Islamic bank also helps for that. They arrange many social awareness and built many
organizations for that and invest almost 1-2 million every year.
6.0 Limitation of the study
The limitations of the study are those characteristics of design or methodology that impacted
or influenced the interpretation of the findings from your research. Major limitation of the study
is given as follows:
6.1 Time limited
As the officers are very busy with their daily work, they could provide very little time.
Limitation of time was one of the most important factors the shortened the present study. Due
to time limitation many aspects could not be discussed in the present study.
27%
23%
14%
36%
Peace and Justice Strong Institutions:
Peace Justicve humunities Reduce Violence

6.2 Resources limited
Doing research when resources are severely limited will always be challenging. For covid
situation we could not been collected some data in practically. Also, sustainable development
topic, we could not find too much information from any server.
6.3 No sufficient data
We aren’t collected sufficient data from any server. The internet has not sufficient data for
conducting the research. It is very difficult to collect the data from various sources. In
Bangladesh people are not aware about sustainability. So, internet sources have lack of data.
6.4 Hypothesis research
A hypothesis is a tentative relationship between two or more variables which direct the research
activity to test it. A hypothesis is a testable prediction which is expected to occur. It can be a
false or a true statement that is tested in the research to check its authenticity. It is a hypnotist’s
research. So, the result might not be 100% accurate.
6.5 Limited scope for study
This report covers introduce with Sustainable Development and Research Background
performed by IBBL. It also covers IBBL & Sustainable Development in Bangladesh. The scope
of a study explains the extent to which the research area will be explored in the work and
specifies the parameters within the study will be operating. Generally, the scope of a research
paper is followed by its limitations
7.0 Recommendation
This report gave valuable insights as to improvement were necessary to improve the islamic
banking for sustainable development. Islami Banking with its strong corporate image and
organization strength can successfully utilize the presented based on the findings of the study.
a) Islamic banks need to identify cost drivers that are responsible for increasing cost of
production.
b) Mergers and acquisition among and between small Islamic banks can be a possible
strategy to materialize the benefits of scale economics in sustainable development.
c) Change the perception of the people about the negative aspects of islamic product
regarding its partial or non-compliance with shariah rules.

d) To illustrate the benefits and modes of islamic banking product so that people get to
understand which products fulfill which sort of needs.
e) University level curriculum can be modified to include subjects or topics on islamic
finance.
8.0 Conclusion
This study has investigated the superiority of Islamic Banking for sustainable development
using descriptive statistics, t-test and test of hypotheses. Superiority as part of Islamic banking
can play a pro-active role in emerging economy for sustainable development. The trend of
islamic banking has been growing in Bangladesh, which is an aid to environmental protection
as well as sustainable development. Social structure is significantly changing day to day due to
unplanned city building, deforestation, digging hill tracts, natural disaster, and deregulation.
These factors have been increasing pressures on the ecosystem of a country that significantly
impedes the sustainable development.
The study aims at providing the superiority of Islamic banking for sustainable development.
From the study, it found that Islamic banks prefer superiority as a compliance of ‘Shari’ah’.
Furthermore, superiority has more significant connection to the Islamic as it supports the
features- social responsibility, cleanliness, reduce wastage of resources and uphold ethics- of
superiority. The study provides the evidence that Islamic banks are significantly following the
components of superiority.

9.0 References
Department of Economic and Social Affairs. (n.d.). Retrieved from United Nation: https://sdgs.un.org/goals
Department of Economic and Social Affairs. (n.d.). Retrieved from United Mation: https://sdgs.un.org/goals
Marshall Freeman. (2021, April 14). How to prevent environment damaget. Retrieved from Marshall Freeman:
https://www.marshallfreeman.com.au/blog/how-to-prevent-bad-debt/
Open Working Group proposal. (n.d.). Retrieved from sustainabledevelopment:
https://sustainabledevelopment.un.org/sdgsproposal.html
Pandey, A. (2017, May 8). How to create green environemnt in Bangladesh. Retrieved from ipleaders:
https://blog.ipleaders.in/how-to-get-money-back-from-friend-legally/
Wikipedia. (2021, Januuary 31). environment management. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/environment_management
Wikipedia. (2021, February 18). Islami Bank Bangladesh Ltd. Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Islami_Bank_Bangladesh_Ltd
Wood, M. (2020, September 29). Collateral Coverage Ratio: Formula, Definition, and Examples. Retrieved from
Fundera: https://www.fundera.com/blog/collateral-coverage-ratio-definition

Superiority of Islami Banking for Sustainable Development

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Superiority of Islami Banking for Sustainable Development

Similar to Superiority of Islami Banking for Sustainable Development (20)

More from Jahid Khan Rahat

More from Jahid Khan Rahat (20)

Recently uploaded

Recently uploaded (20)

Superiority of Islami Banking for Sustainable Development