BB appoints Ashraful Alam as observer to Islami Bank

Bangladesh Bank has appointed Mohammad Ashraful Alam as observer to Islami Bank Bangladesh PLC.

In a statement issued today (10 June), the central bank said he has been appointed under Section 49(1)(gh)(a) of the Bank Company Act, 1991.

The appointment has been made to closely monitor the bank's overall activities, safeguard the institution's interests, protect depositors and ensure broader public interest, the statement said.

As observer, Mohammad Ashraful Alam, who served as executive director of Bangladesh Bank, will participate in meetings of the bank's board of directors and other relevant activities. 

He will also provide Bangladesh Bank with necessary information and observations regarding the bank's operations.

Bankers voice concern over Islami Bank turmoil as central bank seeks consensus solution

Bangladesh Bank said it remains committed to ensuring stability, good governance, transparency and accountability in the country's banking sector.

The central bank expressed hope that the appointment would help strengthen discipline and public confidence in Islami Bank's operations.

The development comes after the Association of Bankers, Bangladesh (ABB), has expressed deep concern over the ongoing instability surrounding Islami Bank.

ABB Chairman and Managing Director of City Bank, Mashrur Arefin, shared these concerns following a high-level meeting with the governor of Bangladesh Bank.

He said the situation at Islami Bank is not merely an issue of a single institution but is having a negative impact on the entire banking sector, adding that bankers are "highly concerned" over the developments.

Mashrur Arefin added that the governor views the ongoing situation at Islami Bank Bangladesh PLC not only as a banking sector issue but also as a political matter, and is attempting to resolve it through consensus among the concerned parties.