More than three months after Bangladesh Bank dissolved Islami Bank Bangladesh’s board, the lender remains without a full governing body, prompting customers and shareholders to demand the resignation of the central bank-appointed administrator.
Islami Bank Sachetan Grahak Forum made the demand on Monday, accusing administrator Mohammad Zahir Hossain of failing to make visible progress in forming a new board or resolving key governance issues since taking charge.
The group urged Bangladesh Bank to immediately constitute a full and effective board comprising independent, competent and experienced professionals.
Bangladesh Bank dissolved Islami Bank’s entire board, including its chairman, on 14 June and assigned Zahir, an executive director of the central bank, to exercise all board powers and responsibilities. The bank is still operating under that arrangement without a full board.
The demands came at a press conference outside Islami Bank Tower in Motijheel before a protest march attended by customers, shareholders, investors and sponsors of the bank.
Convener of the forum Nur Nabi Manik said there had been little visible progress on ongoing legal cases and other issues that the administrator was expected to address.
He alleged that several matters within the administrator’s authority could have been resolved without fresh instructions from Bangladesh Bank, but decisions had instead been referred back to the central bank.
“If you cannot resolve matters within your authority and cannot play a role in taking Islami Bank forward, we ask you to return to your workplace,” Manik said, addressing the administrator. “Accept responsibility for your failure and return to your workplace.”
The forum also demanded progress on issues surrounding the bank’s ownership, alleged loan irregularities, recovery of funds and ongoing litigation.
The demand came amid tensions surrounding the bank. On 14 September rival groups clashed outside Islami Bank’s headquarters, leaving several people injured. Bangladesh Bank later described the incident as unwarranted.
The forum accused a group of trying to destabilise the bank through organised campaigns and claimed some people involved had received financial support from outside sources, but presented no documentary evidence to substantiate the allegation.
The group said prolonged uncertainty over the bank’s governance could undermine the interests of its large depositor base and called for an independent board to restore normal governance.
When he took charge, Zahir had said steps were under way to constitute a completely neutral board for Islami Bank while ensuring uninterrupted banking services for customers.
A full board, however, has yet to be formed.
