BB appoints observer to Islami Bank amid unrest

 
Bangladesh Bank reappointed an observer at Islami Bank Bangladesh PLC amid ongoing unrest at the country's largest private bank, triggered by the banking regulator's appointment of a new chairman for the bank.
The central bank appointed Md Ashraful Alam, one of its executive directors, under the powers vested in it by the Bank Companies Act, 1991.

Earlier, in December 2022, Bangladesh Bank had appointed an observer at the country's largest Shariah-based bank.
Senior officials of Bangladesh Bank, confirmed the development.

He said the appointment had been made to closely monitor the bank's overall operations, safeguard the interests of the institution, protect depositors and ensure the greater public interest.

As an observer, Ashraful Alam will participate in meetings of the bank's board of directors and other relevant activities, and provide Bangladesh Bank with necessary information and observations regarding the bank's operations, he added.

On Monday, the bank sought a special liquidity support facility of Tk 10,000 crore from Bangladesh Bank as the country's largest Shariah-based lender reeled from a surge in deposit withdrawals.

Between June 1 and June 7, deposit withdrawals from the bank amounted to Tk 4,241 crore.