Banking Sector's Role in Sustainable Development in Bangladesh

This report presents a comprehensive analysis of the banking sector's contribution to sustainable development in Bangladesh, focusing on a comparative study between Islamic and conventional banks. The research begins by outlining the aims, objectives, and research questions, including null and alternative hypotheses related to the differences in contributions and profit generation between the two banking systems. The methodology involves both qualitative and quantitative research approaches, utilizing secondary data from bank annual reports and government sources, complemented by semi-structured interviews with managers and advisors. The study employs an inductive research approach, interpreting the data through an interpretivism philosophy. The report also highlights the original contribution to knowledge, emphasizing the importance of the banking sector's role in economic development and the differentiation between Islamic and conventional banking practices. It examines the initiatives taken by both types of banks in promoting sustainable development, including financial services, and the application of green-banking policies. The research aims to provide recommendations for best practices and contribute to the understanding of how the banking sector can support Bangladesh's sustainable development goals. The study also discusses the differences in risk management and ethical principles between Islamic and conventional banks, providing a detailed overview of the contribution of both in the sustainable development or well-being of others.

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Application to register for a Research Degree (R1)
(All references are to the University’s Research Degree Regulations)
PLEASE USE Arial 12 font. References should be appended to section 2.3 of this document.
Consult the published guidance booklet and notes before completion.
Specify the Source(s) of any External or University Funding for Student Bursary
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2. Programme of Research
2.1 Title of the proposed investigation (to appear on the certificate unless later modified
via an R9):
Research Title:The contribution of the banking sector in promoting sustainable
development in Bangladesh; A comparative analysis between Islamic and
conventional banks.
2.2 Aim(s)and objectives of the investigation(bullet points only):
Research aims and objectives
Practical Aim
Hypothesis 1:
Null hypothesis (H0): There is no significant difference in the mean values of contribution made by Islamic
and Conventional banks for promoting sustainable development in Bangladesh.
Alternative hypothesis (H1): There is a significant difference in the mean values of contribution made by
Islamic and Conventional banks for promoting sustainable development in Bangladesh.
Hypothesis 2:
Null hypothesis (H0): There is no significant difference in the mean values of profit generated by Islamic
and Conventional banks in Bangladesh.
Alternative hypothesis (H1): There is a significant difference in the mean values of profit generated by
Islamic and Conventional banks in Bangladesh.
Theoretical aim and objectives
Objectives:
 To break down the variety of financial services that can Islamic and conventional banks offer in
supporting sustainable growth in Bangladesh.
 To justify the initiative taken by Islamic and conventional banks to promote the sustainable
development with respect of education, infrastructure, and agriculture.
 To develop a series of recommendation on the best practices (Con vs Islamic modules) for
sustainable development in Bangladesh.
The purpose of this research is to examine the contribution of Islamic and Conventional banksin
promoting the achievement of sustainable development in Bangladesh.
Objectives:
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 To evaluate an understanding of sustainable development practices in the context of
Islamic and conventional banks.
 To break down the variety of financial services that can Islamic and conventional banks can
offer in supporting sustainable growth in Bangladesh.
 To justify the initiative taken by Islamic and conventional banks to promote the sustainable
development with respect of toeducation, infrastructure, and agriculture.
 To conduct a comparative analysis of Islamic and conventional banks with respect to
socioeconomic sustainable development in Bangladesh.
 To develop a series of recommendations on the best practices (Con vs Islamic modules) for
sustainable development in Bangladesh.
Research questions
J
Q.1 Does Islamic banks haves a significant role in promoting sustainable development in
Bangladesh?
Q.2 How are conventional and Islamic banking system is efficient or effective in supporting
sustainable development in Bangladesh?
2.3 Give an account of the proposed plan of work for the research to be undertaken for
theMPhil and/or PhD. For example. You should mention all the bullet points for these
section .
 This project helps in assessing in the extent to which banking activities do by conventional
and Islamic banks make contribution in the welfare of others.
 Such concerned project will contribute in my research skills and enhances ability in relation
to conducting further investigation.
 From such project information regarding the level to which conventional banking practices
are effectual over Islamic, in the context of sustainable development, will be assessed.
 By taking into account the findings of such project banking units operating in Bangladesh
would become able to develop suitable strategies for sustainable development.
 Through conducting survey on 10 managers and advisors of Islamic and conventional
banking unit data will be gathered.
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 For managing and completing study on time specific Gantt chart will be prepared as
followed.
 The main contribution of mine in relation to such study is in-depth investigation on the
banking sector of Bangladesh.
 Concerned study will enhance my knowledge and skills pertaining to conduct research more
effectually. Hence, such study will develop my knowledge and understanding in the field of
methodology as well as data analysis to a great extent.
Proposed plan of work for the research of PhD by Thesis:
My main motive behind conducting research is to examine the contribution of the banking sector in
promoting sustainable development in Bangladesh. Sustainable development is referred asto
being a leading concern of toalmost all worldwide nations where it simply refers to meetingout the
current requirements of people without bargaining the capacity of future generations to meet out
any such future needs (Griggs et. al., 2013). Thus, my research work is has focused on bringing a
sustainable development in toBangladesh, where it is one of the mostthis considerate nation, is
developing at a higher pace with an expectation of toattaining its developmental agendas. For
Bangladesh, which has also created a framework of SDG referring to sustainable developmental
goals supported by United Nations (UN). It has, however opened a discoursedupon asa
developing nation with indentifying thea principal contribution of the banking system towards the
achievement of these goals. and hasTo this end this research project has been chosen to evaluate
the undertaken practices of Islamic and conventional banks in support of the SDG.
The present study conducted by me and its findings are highly significant which in turn helps other
scholars in developing suitable hypothesis for further study. In the recent times, attention of people
and researcher increased significantly towards sustainable development. Thus, concerned study
will provide high level of assistance to other researchers in identifying the extent to which Islamic
and Conventional banks contributes in the sustainable development in Bangladesh (Ali
et.al.,2015). Also, the current undertaken research work by me will assist the banking firms in
taking suitable initiatives for a sustainable development of the nation and thereby aid in their
successful growth. The current study has been carried to examine the contribution of Islamic and
Conventional banks in promoting the achievement of sustainable development in Bangladesh. It
indicates a significant purpose where this will lead to acknowledge the actual influence of such
banking system in a sustainable growth of Bangladesh. In case of any discrepancy, this research
will together investigate ways to bring improvement in their current undertaken approaches for
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resulting in an effective development of Bangladesh in terms of enhancing its current economic
status.
Islamic banking lays high level of emphasis on complying with Sharia while performing banking or
financial activities. On the other side, conventional banks focus on earning money by charging
interest and fees. The major difference between both such banking practices is that Islamic banks
earn money through profit and loss sharing, leasing as well as trading. Both Islamic and
conventional banks prefer to do practices in a sustainable manner that contributes to their
respective brand image (Nobanee and Ellili, 2016). From assessment, it has been identified that
by developing innovative policies, regulations and norms, financial institutions can develop
greener as well as the inclusive monetary system. Now, Bangladeshis leading in the category of
sustainable development because it presented several examples in relation to following
institutional ethos under the financial sector. Hence, financial institutions which are performing in
Bangladesh have developed policies in relation to green-banking and thereby contribute in the
aspect of sustainable development.
From the investigation, Sadiq and Mushtaq (2015) found there is a difference between Islamic and
conventional banking to a great extent. The reason behind this, conventional banks earn money
by charging interest and fees for the services provided. On the other side, Islamic banks earn
money through the means of profit and loss sharing, leasing, trading etc. However, it is to be
critically evaluated by Boone and Özcan (2016) who said that when investors invest money in the
conventional banks then they get a fixed amount of income. In contrast to this, under Islamic
banking principle and returns are not guaranteed. Mentioned that Islamic banking system is highly
effectual and assists in eliminating the weaknesses of the conventional market. Moreover, Islamic
banking system provides or indulges greater discipline in the financial system through enabling
lenders in relation to risk sharing aspect.
On the critical note, Shah, Afroz and Shah (2017) claimed that, unlike Islamic banks, conventional
banks make more focus on improving the aspect of risk management. Now, bankers make focus
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on monitoring the performance of their clients. Further, conventional banks also develop
mechanism with the motive to assess environmental risk exposure and thereby protect investors
from the situation of loss. Ahmed (2016) asserted that as per Islamic system, excessive executive
compensation is ruled out as it complies with the ethical principles such as fairness, accountability,
risk and profit-sharing to the significant level. It also prohibits misrepresentation of risk and thereby
provides customers with suitable information. Hence, by considering all the above-mentioned
aspects it can be said that by undertaking different measures both Islamic and conventional banks
contribute in sustainable development or well-being of others.
Research Methodology:
This is in regard to specify the undertaken aims and objectives of this research work where both
qualitative and quantitative research methods will be selected. This in turn has depicted the use of
mixed research approaches by the investigator with a view of obtaining enormous information to
finally analyse the acquired findings (Creswell, 2013). The secondary data will be gathered from
Bangladeshi Islamic and conventional banks by referring to their annual reports, as well as, the
reports generated by the ministry of industry, the ministry of agriculture and the statistics Centre of
Bangladesh. Also, for a timely attainment of the formulated research objectives, the investigator
will undertake a descriptive quantitative analysis along with a qualitative analysis with the
assistance of a semi-structured interview.
The scholar will undertake both quantitative and qualitative research to evaluate the effectiveness
of Islamic and conventional banking. This in turn helps researcher in identifying the extent to which
Islamic banking practices contribute to the sustainable development in Bangladesh. In the present
investigation, scholar will employ inductive research approach to ascertain the role of conventional
and Islamic banking in the sustainable development in Bangladesh (Bernard, H.R., 2017).
According to the research type, interpretivism philosophy will be undertaken by the scholar. Based
on such philosophy data will be gathered and analysed by the scholar. To assess the role of
Islamic banking practices in the sustainable developmental aspect of Bangladesh data will be
gathered by the scholar through both primary and secondary sources. Hence, face to face semi-
structured interview will be conducted by the researcher with the motive to get information
regarding sustainable development in the field of agriculture, infrastructure etc.
Thus, by taking reviews from10 managers and advisors of Islamic and conventional banking unit’s
primary data will be gathered by the scholar. Besides this, to gather secondary data books,
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journals and scholarly articles pertaining to Islamic banking as well as sustainable development
will be evaluated by the researcher (Luton, L.S., 2015). By using simple random sampling
technique scholar will select 10 managers and advisors from Islamic and conventional Bank of
Bangladesh. For analysing data set and presenting suitable findings thematic analysis will be
conducted by the researcher. Based on such aspect, scholar will prepare themes by taking into
account the research objectives and support the same with secondary findings as well as
graphical presentation. With the motive to enhance the effectiveness of the studies scholar will
take prior permission from respondents regarding the survey.
2.3.1 In the case of PhD, state clearly and succinctly the original contribution to
knowledge to be made by this research (See Regulations 1.3, 1.4, 3)
Original contribution to the knowledge to be made in the investigation:
 In the present research proposal, the major objective of investigator is to analyse the
contribution of banking sector in promoting growth and sustainable development in
Bangladesh. With assistance of this study, researcher can able to investigate the
importance of banking sector and its contribution in the economic development of country.
This study helps to the PhD student who has investigated the importance of banking sector
in the country's development.
 In addition to this, this investigation helps to the scholar in the present time because by this
they can explore the difference between conventional bank and Islamic bank (Ferhi and
Chkoundali, 2015).
 Furthermore, to develop sustainable growth in the Bangladesh, conventional bank plays a
very crucial role. Moreover, in the sustainable growth and development of economy,
banking sector have various strategies by which it can make effective development in the
Bangladesh. With help of this study, scholar has beneficial to acquire the knowledge about
the current economic condition of Bangladesh and its banking performance. Hence, such
proposed study will provide assistance in analyzing the extent to which Islamic and
conventional banks aid in sustainable growth.
 In addition to this, with help of this investigation, scholar can easily compare the commercial
bank with other bank in the country. This collected data can be used by the other
researcher while they conduct the investigation about the topic of Islamic banking and
conventional banking about the Bangladesh. This study assists to the scholar in analyse the
entire financial condition and economic performance of Bangladesh. Hence, such study will
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help in assessing whether practices undertaken by the conventional banks for sustainable
development are better or not over others.
 By doing assessment, I have found that significant studies were conducted to analyze the
contribution of Islamic and conventional banking practices in sustainable development.
Thus, current study or research will significantly contribute in exploring the aspects
regarding the role of Islamic and conventional banks in promoting sustainability in
Bangladesh.
 It will also exhibit the manner in which sustainability practices of Islamic banks differ from
the conventional. Further, study will also provide deeper insight about the reasons due to
which one banking practices are considered as better over other in terms of sustainability.
 Along with this, study & its outcome will also provide Islamic, conventional and other banks
operating in Bangladesh with a series of recommendations that can be undertaken for
promoting sustainability aspects.
2.3.2 Does the research involve human participants, data or material? Yes*/No*
(If so, Form RE1 (Research Ethics Checklist) must be completed, approved at
School/Institute level, and submitted along with Form R1). Yes
2.4 Resources(details of facilities and resources e.g. hardware, software, methods and
tools available, including location if not at University of Bolton)
To carry out such research computer has been used for data collection, analysis and preparation
of report. Along with this, to attain the research aims and objectives data will be gathered from 10
bank managers including both Islamic and conventional. Hence, by suing such tool or sources
contribution of Islamic and conventional bank in the promotion of sustainable development in
Bangladesh will be evaluated.
2.5 Collaborating Establishment(if applicable)
In the present dissemination, investigator has not done any collaboration with anyone.
2.5.1 Name of Collaborating Establishment(please attach letter-see Regulation 1.5)
2.5.2 Relationship between work to be undertaken in the collaborating
establishment and that to be undertaken at the University or elsewhere (see
Regulation 1.5)
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3. Related Studies (Complete either 3.1 or 3.2)
3.1 Details of any programme of related studies to be undertaken (see Regulations
3.1(ii) and (iii))including any mandatory work-placement or practicum and the PGR
Student Skills Development Programme.
Detail of program in the investigation
To conduct investigation about the analysis of significance of banking sector in promoting
sustainable development of country, researcher has used its effective knowledge, ability, capability
and skill. Researcher has used its effective understanding while conduct the study about the
sustainable development and role of banking sector in the Bangladesh. For effective study, major
scholar required sufficient time and fund. Time is very important in the investigation according to
which various activities has been organised. Researcher has used time in a systematic manner as
they prepare schedule and accomplished each activity according to specific time period (Iqbal and
Molyneux, 2016). Furthermore, scholar has design a systematic literature review through which
effective knowledge about the sustainable development and significance of bank has been
included. With help of literature review, scholar has able to conduct the data about the banking
sector and its role in the sustainable development of the Bangladesh. Researcher has also used
analytical and research skill by which entire investigation has been systematically done (Lebdaoui
and Wild, 2016). With help of these analytical and research skill, scholar can analyse the collected
information about the contribution of banking sector in the sustainable growth and development in
the Bangladesh. In addition to this, scholar has conducted each activities of the investigation
according to the specific period and determined target. With help of collected data, scholar can
conclude and summarise effective outcome about the investigation.
3.2 Where an integrated programme of study is proposed, details of the course of
postgraduate study on which the candidate's performance is to be formally assessed
(see Regulations ‘Professional Doctorate Framework’)
Detail of the course of postgraduate study
Professional doctrine program is a kind of research degree which major aim is to
investigate and collect information about the subject. It is designated at in the higher education
qualification credit level 8 in the QAA framework. This is very high professional program which is
authorised by the University. The researcher who involves in this program will admit, registered by
the graduate school (Ferhi and Chkoundali, 2015). In this present investigation, scholar have
major subject is to analyse the contribution of banking sector in promoting sustainable
development in Bangladesh. All data in the investigation should be relevant to the topic according
to this program.
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4. Period of Study (see Regulation 4)
Amount of time (hours per week average) allowed for programme: 49 hours per week
Expected duration of programme (in months) on the above basis to MPhil:
and additionally,to PhD: 23 Months
Scholar will follow the below mentioned plan to accomplish study within the period of 23 months:
Activities /
months
1
1
1
2
1
3
1
4
1
5
1
6
1
7
1
8
1
9
2
0
2
1
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Identificatio
n of
research
tools &
technique
and
thereby
developme
nt of
methodolo
gy
Designing
questionnai
re for
survey
Collection
of primary
data via
survey
Arranging
gathered
data set in
a
structuredw
ay
Analyzing
data set
and
presentatio
n of
findings
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Drawing
conclusion
Giving
recommen
dations
Arranging
report is a
structured
way
Taking
feedback
and doing
modificatio
n
Final
submission
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