Bangladesh Bank dissolves board of ICB Islamic Bank
Boards of 12 banks restructured so far since the changeover in government in August 2024
The board of directors of ICB Islamic Bank has been dissolved by the Bangladesh Bank.
The decision was formally communicated to the bank through an official letter issued on Wednesday (9 April).
According to the central bank's directive, the board was dissolved to protect the interests of depositors, safeguard the bank's operations, and ensure good governance.
Keep updated, follow The Business Standard's Google news channel
The central bank said that due to serious managerial and governance weaknesses, ICB Islamic Bank is facing a severe capital and provisioning shortfall, a high volume of classified investments, significant accumulated losses, extreme management instability, and a severe liquidity crisis.
The Bangladesh Bank cited these issues, along with weak policy-level decisions by the board that have led to the deterioration of the bank's financial condition and disrupted banking discipline, as reasons for the decision.
The central bank further mentioned that these circumstances resulted in actions by the board that were contrary to the interests of both the depositors and the bank itself. Therefore, under the authority of the Bank Company Act, the existing board has been dissolved in the public interest, it said.
A separate circular from the Bangladesh Bank announced that Executive Director Mojibur Rahman has been appointed to assume the powers and responsibilities of both the board of directors and the managing director, in order to protect the bank's interests and restore sound governance.
The Bangladesh Bank has so far restructured the boards of 12 troubled banks, including ICB Islamic Bank, since the changeover of the government in August 2024.
