Title: The Dhaka Mercantile Co-operative Bank Limited: a case of Islamic Shari'ah banking in Bangladesh

Authors: Jashim Uddin Ahmed; Nabila Nisha; Afrin Rifat

Addresses: Department of Management, School of Business and Economics, North South University, Bashundhara, Dhaka-1229, Bangladesh ' Department of Accounting and Finance, School of Business and Economics, North South University, Bashundhara, Dhaka-1229, Bangladesh ' Department of Accounting and Finance, School of Business and Economics, North South University, Bashundhara, Dhaka-1229, Bangladesh

Abstract: A recent subject of interest in the ever-growing banking sector has been the dominating presence of co-operatives as organisations that can foster socio-economic development and reduce poverty across developing countries. This paper investigates the role of co-operatives in rural areas, wherein they embrace the function of a bank in order to enhance the financial stability of capital-deprived people of a country. The paper particularly focuses on the Islamic Shari'ah concept of the Dhaka Mercantile Co-operative Bank Limited (DMCBL). In view of this practice of Islamic banking, this bank plays an influential role in the reduction of banking exclusion and reduction of the economic ability of millions of people in Bangladesh. Highlights of the paper are mostly stressed on two aspects of the co-operative bank - their diversity and success on one hand and setbacks and challenges on the other hand.

Keywords: Bangladesh; Dhaka Mercantile Co-operative Bank; Shari'ah banking; NGOs; non-governmental organisations; Islamic microfinance; Islamic banking; Islamic finance; cooperatives; rural areas.

DOI: 10.1504/IJFIB.2016.076622

International Journal of Financial Innovation in Banking, 2016 Vol.1 No.1/2, pp.62 - 79

Received: 16 Jun 2015
Accepted: 07 Jan 2016
Published online: 17 May 2016 *

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