Chapter 1

INTRODUCTION

Introduction

We all know that Bank is nothing but a financial institution. And it’s a very much well known word to all of us. Bank actually serves as a financial intermediary. The term "Bank" may refer to one of several related types of entities like: Central bank, State- owned Commercial bank, Private Commercial bank or Merchant bank, Foreign Commercial bank, Specialized Development bank, etc. But when we use the term bank it generally means ‘commercial bank’ that collects the deposit from surplus unit of the society and then lends the deposits to the deficit units of the society. But the new thing is that how it operates and presenting its activities for the purpose of serving customer requirements to increase their well-being in the sense of wealth. Banks also provide many services for clients to make their life easy in this busy environment. In this competitive environment in today’s world, the entire bank increases their facilities in favor of their customers to retain them and capture more share of the market to be leader. The whole banking system is based on the Interest system. But according to the Islamic rules interest is not legal. So many people, who could be the potential customers of Bank, feel not to engage themselves in the banking system. To facilitate them in addition of the Conventional banking System there is another System we can see a banking world that run according to Shariah.

This system established in Bangladesh on 13th March 1983, named Islamic Bank Bangladesh Limited. The definition of Islamic Bank, as approved by the General Secretariat of the OIC, is stated in the following manner. “An Islamic Bank is a Financial Institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt and payment of