Conventional banks in Bangladesh are accelerating efforts to attract clients seeking Islamic financial services amid the ongoing merger of five struggling shariah-based lenders.

According to central bank sources, the Bangladesh Bank’s (BB) move to consolidate financially weakened Islamic banks has prompted many depositors to shift their funds to more stable institutions that still comply with shariah principles.

In response, several conventional banks are either widening their Islamic-banking windows or preparing to convert fully into Islamic lenders.

Official data show that while there were 34 Islamic branches and 730 windows of conventional banks in July 2024, the numbers rose to 41 and 919, respectively, by July 2025. Over the same period, the total number of fully fledged Islamic banks increased from 1,678 to 1,698.