Bangladesh Bank appoints observers at Islami Bank, First Security Bank

Bangladesh Bank has appointed observers at Islami Bank Bangladesh Limited and First Security Islami Bank after the media unveiled massive irregularities in these two private banks in granting loans to several fake organisations.

The central bank spokesperson Mezbaul Haque told Prothom Alo that the two banks have been asked to maintain several instructions in the context of recent discussions centering them. 

The observers will oversee whether these instructions are maintained.     

It is learnt that director of Forex Reserve and Treasury Management Department, Abul Kalam, will observe the Islami Bank while the director of payment service department, Motasim Billah, the First Security and Islami Bank.      

In 2010, the central bank appointed observers at Islami Bank in fear of irregularities in granting loans and financing in militancy. At that time, a director-ranked Bangladesh Bank official would take part in different meetings of the bank. But in 2020, the central bank withdrew the observer three years after the bank went under the control of a Chattogram based conglomerate.  

Bangladesh Bank governor Fazle Kabir was not in favour of keeping an observer for this private bank.