Sustainable Management Practices in Islamic Banking Promoting Social Finance for Economic Resilience in Bangladesh
DOI:
https://doi.org/10.65150/EP-jefrr/V2E2/2026-04Keywords:
Islamic banking, sustainable management, social finance, economic resilience, Bangladesh, Maqasid al-Shariah, Zakat, Waqf, green financing, ESG integration, financial inclusion, Shariah complianceAbstract
Wretched by climate anarchy and commanding poverty, Bangladesh suffers economic ruptures, with moderate poverty soaring to 21.2% in 2025 (microsimulation estimates) from 18.7% in 2022, and has up to 62 million people at the edge of collapse amid the shocks of inflation and disasters (World Bank, 2025). Although it is undergoing a five-bank merger into Sammilito Islami Bank PLC in December 2025, which will command 51.73 percent of deposits, Islamic banking, with a 24.35 percent command of 29.18 percent of its investments by December 2025, provides ethical resilience through Shariah-compliant risk-sharing and social imperatives. This question explores sustainable management - a combination of ESG and Maqasid al-Shariah - to increase the social finance (Zakat, Waqf, micro-Sukuk) over climate crises, post-2024 crises, and skyrocketing NPF ratios (>90% in troubled organizations).
The results derived through mixed-methods (15 interviews, 250 surveys; secondary vortices of Bangladesh Bank/World Bank), and OLS regression of 2020-2025 trajectories, 2025 financing 373.73 billion (benefitting 115,158 souls) is driven by sustainable practices, with 2025 liquidity tumults, merger shocks, and poverty erosion through green infusions 2020) are independent variables with 0.014 beta.
Novelty waves: A Bangladesh-made structure integrates Islamic principles with SDGs 1 and 13, calling on Bangladesh Bank to jump-start green Sukuk incentives and ESG-Shariah mergers. Essence Empirical Shariah-sustainability bonds to resilience in a vortex-vulnerable economy, and increased SDG synergy by 15-20% in flood-scarred realms.
The keywords will include: Islamic banking, sustainable management, social finance, economic resilience, Bangladesh, Maqasid al-Shariah, Zakat, Waqf, green financing, ESG integration, financial inclusion, Shariah compliance.
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