Women play an important role in Bangladesh’s economic development. They work in the garment industry, agriculture, small businesses, services and many other sectors. However, many women still struggle to access formal finance, expand their businesses, own productive assets and make independent financial decisions. Islamic banking can help overcome these challenges and improve women’s economic independence.
The main goal should be to ensure that women can use financial services to start businesses, earn more, build assets and gain greater control over their financial lives.
Financing Women Entrepreneurs
Many women in Bangladesh run tailoring shops, boutiques, online businesses, handicraft enterprises, food-processing units and small trading businesses. However, they often find it difficult to obtain bank financing because they lack property to offer as security, formal business records or a credit history.
According to Bangladesh Bank’s Islamic Banking and Finance Statistics, July 2026, Islamic banking held deposits of approximately Tk 4.69 trillion, investments of Tk 6.12 trillion and total assets of Tk 9.96 trillion. These accounted for 20.84%, 24.03% and 16.60%, respectively, of the banking sector’s total deposits, investments and assets. Bangladesh had 10 full-fledged Islamic banks, while several conventional banks also offered Islamic banking services through branches and windows.
Despite its significant role, Islamic banking faces challenges in deposit growth and public confidence. Strong governance, Shariah compliance, sound liquidity management, transparent communication and better customer service are essential for the sector’s sustainable growth.
Islamic banks can support women entrepreneurs through Shariah-compliant financing. Murabaha can help them purchase machinery and raw materials, while Ijarah can provide access to equipment. Mudaraba and Musharaka can support suitable business ventures through agreed contractual arrangements.
Banks should introduce special financing programmes for women-owned micro, small and medium-sized enterprises. These programmes should offer clear terms, reasonable security requirements and repayment schedules suited to business income. Banks should assess business potential and repayment capacity rather than rely mainly on property as collateral. Such support can help women expand their businesses, create jobs and contribute to the economy.
Supporting Rural and Underserved Women
Rural women contribute to agriculture, poultry farming, livestock rearing, fisheries, handicrafts and home-based businesses. Yet many face difficulties in accessing formal finance because of limited collateral, distance from bank branches and social barriers.
Islamic microfinance, agent banking and digital financial services can help bring banking services closer to these women. The Rural Development Scheme of Islami Bank Bangladesh PLC is one example. 90 percent of its subscribers are rural women. A 2021 study published in the ISRA International Journal of Islamic Finance, involving many women participating in the scheme, reported positive effects on household income, savings, living standards and different aspects of empowerment.
These findings show the potential of Islamic microfinance to improve women’s lives. However, success should be measured by lasting improvements in income, ownership of productive assets, business continuity and financial security—not simply by the amount of financing provided or the number of women reached.
Connecting Finance with Business Opportunities
Bangladesh’s garment industry, agriculture, cottage industries and growing online marketplace offer many opportunities for women entrepreneurs. Islamic banks can help women become independent producers, suppliers and business owners by providing working capital, equipment financing and suitable Shariah-compliant supply-chain facilities.
However, finance alone is not enough. Women also need business management skills, technical training, digital knowledge and access to markets. Banks can work with training institutions, business associations and private companies to help women turn small businesses into sustainable enterprises that generate income and create jobs.
Savings, Digital Banking and Financial Independence
Savings accounts, term deposits, agent banking and digital payments can help women manage their earnings, build savings and prepare for future investments. Mudaraba savings and term deposits and Al-Wadiah current accounts can provide suitable options, depending on customers’ needs and the relevant account terms.
However, having a bank account in a woman’s name does not automatically give her financial independence. She must also be able to access and control her money. Islamic banks should therefore promote financial education, secure digital transactions, clear information about charges and effective customer protection. Special attention should be given to women who have limited digital skills or access to technology.
Islamic Social Finance for Vulnerable Women
Women living in extreme poverty or without regular incomes may not qualify for commercial financing. Islamic social finance can help meet their needs. Zakat for eligible recipients, Sadaqah and Qard Hasan, where suitable arrangements exist, can support vulnerable women.
When combined with vocational training, livelihood support and access to markets, these resources can help women start small income-generating activities and gradually become financially independent. Proper monitoring and transparent fund management are essential to ensure that support reaches the right people and is used effectively.
Policy Priorities for Bangladesh
To make Islamic banking more effective in empowering women, Bangladesh Bank and Islamic banks should focus on five priorities:
- Expand suitable financing: Set clear targets for financing eligible women-owned businesses. Offer transparent terms, reasonable security requirements and repayment schedules suited to business income.
- Provide business support: Work with training institutions and business organisations to help women develop bookkeeping, business management, registration and digital marketing skills and find new markets.
- Reach more rural women: Expand Islamic microfinance and agent banking in underserved areas. Use properly managed social finance to support women who cannot yet qualify for commercial financing.
- Protect financial independence: Ensure secure access to individual accounts, provide financial education, explain charges clearly and establish effective complaint-resolution systems.
- Measure real results: Collect gender-based data and assess changes in women’s income, savings, asset ownership, business survival, job creation and financial decision-making. Use these findings to improve programmes.
Achieving these goals requires cooperation among Bangladesh Bank, Islamic banks, government agencies, training institutions and private businesses.
Islamic banking can help empower women in Bangladesh by supporting businesses, improving rural livelihoods, encouraging savings and opening up new economic opportunities. To achieve lasting results, banks must go beyond offering Shariah-compliant products. They must also provide accessible financing, business support, digital services and effective customer protection.
Women’s empowerment is not only a social responsibility; it can also strengthen entrepreneurship, create employment and increase national productivity. The real success of Islamic banking should be measured not by how many women open bank accounts, but by how effectively they build sustainable businesses, own productive assets, control their earnings and take part in financial decisions.
Md. Khairul Hasan is an Assistant Vice President in the Brand Communication Division of Sammilito Islami Bank PLC and a financial-sector analyst.
