BS News Agency: Bangladesh Bank has cancelled the appointments of all directors—including the chairman—of the Board of Directors of Islami Bank Bangladesh PLC. Simultaneously, Mohammad Zahir Hossain, an Executive Director of Bangladesh Bank, has been entrusted with exercising all the powers and discharging all the responsibilities of the bank's board. The notification states that, in exercise of the powers conferred upon Bangladesh Bank under Sections 45 and 47(3) of the Bank Company Act, 1991, the appointments of all directors—including the chairman—of Islami Bank Bangladesh PLC have been cancelled in the interest of the bank, the depositors, and the public.
It further states that, in accordance with Section 47(3) of the same Act, Bangladesh Bank Executive Director Mohammad Zahir Hossain will exercise all powers and perform all duties of the Islami Bank board until further notice.
Observers believe that this decision by the central bank has further strengthened the regulatory body's direct supervision over the operations of the country's largest Sharia-compliant bank. However, the notification did not specify any particular reason for the dissolution of the board, nor did Bangladesh Bank provide any detailed explanation regarding the matter. Notably, this move by the central bank comes amidst recent discussions and concerns regarding Islami Bank's management, liquidity situation, and customer service. Relevant sources indicate that Bangladesh Bank will take necessary decisions in the future regarding the bank's future operational structure and the formation of a new board.