Shariah-based and Interest-free banking operation was introduced in Bangladesh since Islami Bank Bangladesh Limited was established in 1983. Being inspired by the success of this bank, some new Islamic banks have been established here. Besides, some conventional banks of the country joined the advancement of Islamic banking through opening some Islamic banking branches and windows. With the increase of the number of the Islamic banks, the range of Islamic banking also spread rapidly. As a result, Bangladesh Bank, the central bank of Bangladesh, thought that a combined body was necessary for coordination among respective Shariah supervisory boards of the Islamic banks and Islamic banking branches/windows and to carry out research works in the fields of Islamic banking and finance. So, Bangladesh Bank circulated some specific indications to the chief executives of the Islamic banks operating in Bangladesh one of which was to form a common Shariah board.