islamic development bank(idb)

Welcome to our presentation

Name Reg. No.

Sushanta Roy 2013237067

Iftekhar Robin 20122370453237067

Farzana Salsabil 2013237067

Ebadur Rahman 2013237072

• To know the structure & function of IDB• Loan disbursement procedure• IDB & Bangladesh• IDB with World Bank & others• Limitation about IDB

Objectives of the Study

Basic Information

Founded : July 1975Type : Islamic Financial InstitutionHeadquarters : Jeddah, Saudi ArabiaMembership: 57 countriesPresident : H.E. Dr. Bandar Hajjar

Historical background

Islamic banking Egypt 1963

IDB OIC 1974

Several Islamic banks Existence 1970s

Islamic financial institutions

Occurred 1980s.

The Accounting and Auditing Organization for Islamic

Financial Institutions (AAOIFI) 1990sEstablished

Establishment

Function

•

Period

Conference of Ministers of Muslim Countries

Formally opened

The Inaugural Meeting of the

Board of Governors July 1975

December 1973

20 October

1975

Conditions for membership

The prospective member country should be a member of the Organization of the Islamic Cooperation (OIC)

Must have to subscribe and pay its contribution to the capital of the Bank

Must have the willing to accept such terms and conditions as may be decided upon by the IDB Board of Governors.

Objectives of the IDB

• To conduct Interest free economic transaction

• Poverty alleviation and promotion of Islamic financial institutions.

• Promotion of cooperation among member countries

Vision & Mission

Vision• Socio-economic development in member

countries and Muslim communities • Development in non-member countries • in conformity with Shari’ah. Mission• alleviating poverty; promoting human

development; • enhancing cooperation amongst member

countries, • collaboration with their development partners.

Functions of IDBTo Invest in economic and social infrastructure project in member countries

To make loan to the private and public sector for the financing of productive projects.

To assist in the promotion of foreign trade.

To provide technical assistance to member countries.

To undertake research for economic growth for member countries.

Structure of IDBBoard of Governors

Board of Executive Directors

A President

One or more Vice-President

officers and staffs

Board of Governors: Powers

Admit new members and determine the conditions of

admission.

Elect the executive

directors of Bank.

Elect the President of

Bank.

Increase or decrease the

capital stock of Bank.

Board of Executive Directors

• BED is composed of eighteen members .

• Nine Executive Directors appointed by their countries which are the main shareholders, while

• Nine others are elected by the Governors of other countries.

• Responsible for the direction of the general operations and policies of the Bank.

• The term of office is renewable in a period of three years.  

Requirements for President post

The President

The term of office of President shall

be 5 years.

He must be a citizen of member

country of IDB

The President shall be the legal

representative of the Bank.

Disbursement Procedure for loans

• Loan on interest free• Project loans with priorities in recipient country.• Program loan, Bank must measure the wellbeing of people

of recipient country.• Operations are on a profit and loss share basis (PLS) in

reality.• The Bank charges a service fee to cover administration

expenses.

IDB & BANGLADESH

• IDB’S Bangladesh representative is Finance Minister

• Fuel Oil Agreement (5.5 interest rate)• Ashuganj Power Plant Agreement 220 million• Fast Internet Service 351 core Tk (6% interest

rate) • Rural Housing Project of Bangladesh 373 core

tk etc.

Relation with WB & Other Bank

• So far, IDB and the WB have co-financed over 60 projects in 26 countries in Africa, Asia, and the Middle East worth $3.2 billion

• With ADB proposed $250 million Asia Infrastructure Fund and projects.

• With UNDP achieving SDG goals project

Limitation(Continue…..• A massive contrary to their strategy • Aid is highly depend on Saudi Arab’s self interest• Lack of external NGOs • IDB is known to have funded several projects related to the

U.S.-terrorist designated Hamas and the Muslim Brotherhood.• American Islamic Relations (CAIR), Council ties with Hamas• IDB has financed projects by the Islamic Society of North

America (ISNA)• Donated with the Boston Marathon bombings in 2013

Limitation

• Unfamiliarity with Islamic banking system. • To get loan from IDB, there is needed guaranty

from government.• Lack of Technical mechanism.

Reference• Meenai S.A. (2013 )Islamic Development Bank,Retrived

From http/.books.google.com• Islami Bank,Bangladesh.(2008),Islamic Development

Bank, A critical Analysis.• Alan c.(2014),The Facade of Evaluation at the Islamic De

velopment Bank.

• https://counterjihadreport.com/tag/islamic-development-bank-idb/

• Daniel P.(2005), CAIR Founded by "Islamic Terrorists"?• Wikipedia• Paper Cut From Daily Newspaper.