Islamic banks’ workforce shrinks 6% in a year: BB

Islamic banks in Bangladesh saw their workforce shrink by 6 percent year-on-year in August 2026 amid growing digitalisation and automation of financial services and management problems at some banks, according to a Bangladesh Bank report.

Total manpower at Islamic banks stood at 44,782 in August 2026, down from 47,641 a year earlier, according to the central bank’s recently published Monthly Islamic Banking and Finance Statistics report.

The report cited digitalisation and automation as factors reducing the need for manual administrative and operational staff at financial institutions.

“After the July 2024 uprising, an unstable situation has arisen due to improper management of Islamic banks, especially in full-fledged shariah-based banks; manpower shows a declining trend,” the report said.

“On the contrary, conventional banks having shariah-based banking operations are gradually expanding their Islamic banking activities, with an increase in manpower.”

Meanwhile, the number of specialised employees in Islamic banking rose 2.47 percent year-on-year to 580 in August 2026 from 566 in July 2025. The figure stood at 578 in July 2026.

In Islamic non-bank financial companies (NBFCs), however, the number of specialised employees remained unchanged at 11 in August 2026 from a year earlier.

The report attributed the increase in specialised Islamic banking personnel to growing awareness of Islamic finance and demand for professionals with certifications such as Certified Shariah Adviser and Auditor (CSAA) and Certified Islamic Professional Accountant (CIPA).

It also stressed the importance of shariah governance, compliance and risk management in developing professional expertise across the industry.

Islamic NBFCs also recorded a decline in employment, with total manpower falling 10.44 percent year-on-year to 326 in August 2026 from 364 a year earlier.

The report linked the decline to cautious operations amid persistent economic challenges, including high inflation, rising funding costs, liquidity pressures and slower expansion of financing activities.

“In addition, the increasing adoption of digital financial services and operational automation may have reduced the need for workforce expansion in the sector,” the report said.

The report highlighted the need to raise awareness of Islamic finance, increase demand for qualified professionals with relevant certifications, and strengthen shariah governance, compliance and risk management across Islamic financial institutions to build a more skilled and sustainable workforce.