'Other banks will also suffer if anything bad happens to Islami Bank'

Ahsan H Mansur

A reputed bank like Islami Bank is being destroyed intentionally. This bank has been handed over to such a person with whom any good person or organisation would not like to work with.

That is the reason one after another foreign investors are leaving the bank. Money was withdrawn from the bank indiscriminately. The current owner would leave the bank exhausting the bank.

The Bangladesh Bank is now assisting the bank by printing money. By doing this, the central bank is increasing inflation in the country leading to sufferings of the people.

If this continues, Bangladesh Bank will need to print more money. No other alternatives would be there to save Islami Bank. It should be remembered that the bank’s deposit amounts to Tk 1.5 trillion.

As many as 10 million people have deposits in the bank. As a result, if Islami Bank suffers, other good banks will also suffer a loss as people will lose trust in the whole banking sector.

The authorities do not seem to have any goodwill to tackle the situation prevailing in the Islami Bank. Although granting big loans have been stopped in other banks due to irregularities, Bangladesh Bank maintains silence in this regard when it comes to Islami Bank. Instead, the central bank is continuously giving assistance.

The government has to make a decision right away as to what will be the future of this bank. Because, the entire financial sector of the country will will depend on the future of this bank.

*Ahsan H Mansur is the executive director of Policy Research Institute.