Bangladesh Bank Training Academy Journal

Abstract

T¨urkiye and Bangladesh are both Muslim Majority countries. In both countries, Islamic Banking is growing fast. The proportion of Islamic banking of overall banking in T¨urkiye is less than that of Bangladesh. This study evaluates institutional and banking practices of the two markets through a comparative case study of respective market leaders- Kuveyt T¨urk Participation Bank and Islami Bank Bangladesh PLC. The analysis compares ownership structure, Shariah governance, balance sheet composition, Islamic financing modes, and selected financial performance indicators using data of both banks for 2017, 2022, and 2025. The findings reveal notable institutional and operational differences between the two banks. Kuveyt T¨urk maintained a more liquidity-oriented balance sheet, lower non-performing investment ratios, and stronger profitability, whereas Islami Bank Bangladesh allocated a larger share of its assets to financing activities but experienced significant deterioration in asset quality and profitability by 2025 following governance changes.