Key challenges and critical success factors for the Islamic banking sector of Bangladesh

Tanny, Mohibba Tabassum and Islam, rafikul and Wan Husain, Wan Rohaida (2025) Key challenges and critical success factors for the Islamic banking sector of Bangladesh. Online Journal of Islamic Management and Finance, 5 (2). pp. 88-110. E-ISSN 2785-9398

PDF - Published Version Restricted to Registered users only Download (364kB) | Request a copy

Abstract

This research investigates the challenges faced by Islamic banks in Bangladesh in delivering quality service and identifies the critical success factors (CSFs) needed to overcome those obstacles. Semi-structured online interviews were conducted with a purposive sample of 15 experienced bankers from Islamic banks across Bangladesh. Most participants have over 18 years of experience in the field, and their insights offer valuable perspectives on macro and microeconomic challenges. The qualitative analysis of the interviews highlighted five significant challenges and 29 related CSFs. Key challenges include inadequate governance, limited access to capital markets and financial investment, liquidity issues, a lack of Islamic banking products and services, and employees' need for more knowledge about Islamic banking. Understanding these challenges and their CSFs can facilitate Islamic banks in effectively allocating resources, improving their operational performance, and achieving a sustainable competitive advantage. This, in turn, can pave the way for a brighter, more prosperous future for Islamic banking in Bangladesh. By implementing these strategic interventions, Islamic banks can strengthen their role in the wider economic landscape, promoting a more prosperous future for the industry.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Islamic banks, challenges, critical success factors, quality service, Bangladesh
Subjects:	H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Business Administration Kulliyyah of Economics and Management Sciences
Depositing User:	Dr Wan Rohaida Wan Husain
Date Deposited:	22 Dec 2025 01:23
Last Modified:	22 Dec 2025 01:23
Queue Number:	2025-12-Q895
URI:	http://irep.iium.edu.my/id/eprint/125797

Actions (login required)

View Item