Bangladesh Bank plans to form a new board of directors for Islami Bank within the next two to three days in an effort to restore customer confidence, a central bank official said on Monday.
Assistant Spokesperson of Bangladesh Bank Mohammad Shahriar Siddiqui told TIMES that the previous board was dissolved due to customer objections.
“The board of Islami Bank has been dissolved to restore customers’ confidence. As the next step, efforts are underway to form a new full-fledged board within the next two to three days,” he said.
Instead of rushing, efforts are being made to appoint suitable individuals after proper scrutiny, the spokesperson added.
Until the new board is formed, Bangladesh Bank Executive Director Mohammad Zahir Hussain will exercise the powers and perform the duties of the board, he said.
“Since customers had objections to the board, it has been dissolved. At the same time, necessary liquidity support is also being provided. The bank has been given Tk5,000 crore in the last two days,” Siddiqui said.
He expressed hope that the central bank’s recent steps will resolve the ongoing crisis at Islami Bank.
“Bangladesh Bank will do whatever is necessary to restore customers’ confidence,” he added.
On Sunday, Bangladesh Bank dissolved the entire board of directors of Islami Bank, including its chairman, under sections 45 and 47(3) of the Banking Companies Act, 1991. Executive Director Mohammad Zahir Hossain was given the responsibility of exercising all board powers and duties.
Earlier, amid customer protests over leadership controversies, Islami Bank had sought Tk10,000 crore in special liquidity support from Bangladesh Bank to manage withdrawal pressure. The central bank has so far provided Tk5,000 crore in two phases.
