BB pledges clean Islami Bank board after customers' 24-hour ultimatum

Bangladesh Bank (BB) today (22 June) promised to form a
new, qualified board for Islami Bank Bangladesh and warned that political
interference would not be tolerated, after customers staged a sit-in outside
its Dhaka headquarters demanding independent governance within 24 hours.
BB
Executive Director and Spokesperson Arif Hossain Khan said an acceptable board
of directors would be constituted shortly, stressing the bank's systemic
importance to the country's financial sector.
"Islami
Bank is a critical institution within the country's financial ecosystem. If
this bank faces damage, it will trigger a severe negative spillover across the
entire banking sector. No one will be allowed to play politics over the Islami
Bank," said Khan.
The statement came hours after members of the Islami Bank Shacheton Grahok
Forum (Conscious Customers Forum) staged an intensive demonstration and sit-in
program in front of the main entrance of Bangladesh Bank.
In
the morning of the same day, the forum issued a 24-hour ultimatum for a full
and independent board to be named, or else, the demonstrators warn of tougher
action from Wednesday next if the deadline is not met.
Speaking
at the demonstration, the Forum Convener Professor Nur Nabi Manik called for
the exclusion of anyone linked to the controversial S Alam Group from the new
board and demanded the reinstatement of original sponsors and shareholders who
allegedly lost their stakes through state coercion in 2017.
"An
acceptable, independent, and comprehensive board of directors consisting of
honest, qualified, and experienced professionals must be constituted
immediately through structural discussions with relevant stakeholders,"
Manik demanded.
The
forum also sought a special tribunal to prosecute financial sector offenders,
recovery of embezzled funds, confiscation of S Alam Group's local assets, and
repeal of Section 18(A) of the Bank Company Act.
The
leaders of the forum also demanded an immediate retraction of recent statements
made in the national parliament by the Home Minister regarding Islami Bank,
which they alleged provided a subtle hint of restoring control of the country's
largest Shari'ah-based lender to the S Alam Group
The
forum further called for the retraction of recent parliamentary remarks by the
Home Minister, which it alleged hinted at returning the bank's control to S
Alam Group.
Earlier
on 16 June, the forum submitted a memorandum to the Governor of the central
bank, pressing similar demands.
Bangladesh
Bank dissolved Islami Bank's board on 13 June and appointed Executive Director
Mohammad Zahir Hossain as interim overseer. The forum had submitted a
memorandum to the BB Governor on 16 June 16.
















