Islami Bank unrest: Bank MDs express concern, urge swift resolution
The Association of Bankers, Bangladesh (ABB), an organisation of bank chief executives, has expressed deep concern over the ongoing unrest at Islami Bank Bangladesh PLC. At the same time, they believe a swift resolution of the matter would be beneficial for the banking sector.
ABB Chairman and City Bank Managing Director (MD) Mashrur Arefin expressed this concern on Wednesday (10 June) after a meeting with Bangladesh Bank Governor Md Mostakur Rahman. This discussion took place outside the regular agenda of the bankers' meeting.
Mashrur Arefin told reporters that the situation at Islami Bank is not just a problem for a single institution. Its impact is being felt across the entire banking sector. Bankers are worried about the matter, he said.
He added that the Governor also views this situation not merely as a banking sector problem but as a political issue. Efforts are ongoing to find a solution through a compromise between the concerned parties.
The ABB Chairman said the Governor has reiterated a firm stance on ensuring good governance in the banking sector. He urged the bank chief executives not to succumb to political pressure. Simultaneously, he issued instructions to provide accurate information to the Credit Information Bureau (CIB).
The meeting also discussed increasing the credit flow in the banking sector. Mashrur Arefin said the government and Bangladesh Bank have taken an initiative to form a new fund of Tk 600 billion. This money will be used to provide loan support to small and medium-sized enterprises (SMEs). The funds will be distributed under the central bank's refinancing programme.
Mashrur Arefin further added that there are often errors or delays in sending export and import-related information, which creates problems in national accounting. Specifically, significant differences are being observed in the price declarations of imported goods.
Given the volatile market situation, the meeting stressed the need to verify prices through international platforms and online sources before opening letters of credit (LCs) and conducting trade-related activities. The aim is to ensure that the country does not incur losses through overpricing.
The managing directors of all the country's banks, as well as all deputy governors and top officials of the Bangladesh Bank, were present at the meeting.