Full-Fledged Conversion Effects on Operational Areas of Banks: the Case of Bangladesh

Abstract

Abstract.- The study evaluates the e]fects on operational areas of those banks, which have converted themselves into full-fiedge d Islamic banks from conventional bankr Organizational structure, operational areas, reaction of the employees and clients of the banks after conversion are considered as the research areas. General banlnng activities, investment activities and foreign exchange activities of 16 years data have been used to evaluate the effects of conversion. Study finds that banks innovate new products and services afler conversion. Positive effects are seen in investment and foreign exchange activities of the banks afler conversion. Study also observed that the banks introduce new committee and new heads of expenses like Zakat expenses and allowances for the members of Shariah ape rvisor committee afler conversion. Banks also modfied their mission, vision and objectives after conversion. Study found that conversion helps them to build a strong banker customer relationship. Study concluded that the overall effects of conversion are positive.