Islamic banking is not merely a financial institution; it is a banking system founded upon a distinct set of principles, philosophy, and a Shariah-based economic framework. Therefore, in appointing the board of directors and management authorities of any Islamic bank, profound knowledge, expertise, and practical experience in Islamic banking should be given the highest priority. Otherwise, there is a risk that the institution’s core philosophy, objectives, and operations may gradually weaken over time.

In Bangladesh, the Islamic banking sector has become a significant component of the country’s banking system. A large number of customers deposit their savings and obtain financing from Islamic banks based on their religious beliefs and expectations of ethical economic practices. Consequently, the leadership of these institutions should consist of individuals who are not only competent in banking administration and corporate management but also possess a clear understanding of the fundamental concepts of Islamic banking, such as Mudarabah, Musharakah, Murabaha, Ijarah, Salam, Istisna, and Shariah governance.

Unfortunately, it is often observed that appointments to the boards of directors or senior management positions in Islamic banks are influenced more by political loyalty, group interests, corporate influence, or personal relationships than by professional competence. As a result, the unique characteristics and guiding principles of Islamic banking are frequently overlooked in the decision-making process. This creates the risk that these institutions may gradually begin to operate in a manner similar to conventional banks rather than ensuring full compliance with Shariah principles.

A review of successful Islamic banking systems around the world reveals that specialized knowledge is given considerable importance in leadership appointments. This is because managing an Islamic bank is not solely about generating financial profits; it is also about maintaining depositors’ trust, adhering to Shariah principles, and fulfilling responsibilities toward an ethical economic system. If members of the board of directors or chief executives lack sufficient knowledge of the fundamental philosophy of Islamic economics and banking, it becomes difficult to effectively implement the recommendations of the Shariah Supervisory Board.

Today, the Islamic banking sector faces numerous challenges. On the one hand, there is the issue of ensuring sound governance; on the other, there is the challenge of maintaining the credibility of Shariah compliance. In such a context, it is imperative to establish specific criteria for leadership qualifications. Policymakers should seriously consider making specialized training, certification, or professional experience in Islamic banking, Islamic economics, and Shariah governance mandatory for members of the board and senior management.

The greatest strength of Islamic banks lies in the trust of their customers. To preserve that trust, leadership positions must be entrusted to individuals who view Islamic banking not merely as a business model but as a principled and accountable economic system. It is difficult to envision effective leadership in an Islamic bank without a deep understanding of and commitment to Islamic banking principles. Therefore, giving priority to Islamic banking knowledge in the appointment of boards of directors and management authorities is not simply a desirable initiative; it is an essential prerequisite for the sector’s long-term stability, credibility, and sustainable growth.

Md. Mukhlesur Rahman
Islamic Economist and Banker
Advisor, Center for Islamic Economics
Dhaka, Bangladesh.