Islami Bank board dissolved; administrator takes charge

 
In a dramatic regulatory move, Bangladesh Bank on Sunday dissolved the entire Board of Directors of Islami Bank Bangladesh PLC, including its newly appointed chairman, in what it said was a move to protect the interests of depositors and safeguard public money.

The central bank removed all directors of the country’s largest Shariah-based commercial lender with immediate effect under the powers vested in it by the Bank Company Act, 1991.

Bangladesh Bank Assistant Spokesperson Shahriar Siddiqui confirmed the development, noting that the unprecedented step was taken in the public interest to ensure good governance and maintain stability across the banking sector.

According to a circular issued by the central bank on Sunday evening, the appointments of the chairman and all existing directors on the board have been cancelled.

To maintain continuity in the bank's administration and supervisory operations, the central bank has vested all powers and duties of the dissolved board in Bangladesh Bank Executive Director Mohammad Zahir Hossain, according to UNB report. 

He will exercise full managerial and administrative authority under Section 47(3) of the Bank Company Act, 1991, effectively serving as the administrator.