Culture of looting lifted from banking sector: Ahsan Mansur

Bangladesh Bank Governor Ahsan Mansur has issued a stern warning that the "culture of looting" within the nation's banking sector will never be allowed to return.

He emphasised that achieving a transparent financial system requires the essential cooperation of all stakeholders.

The governor made the remarks while speaking as the chief guest in the closing session of the International Islamic Finance and Banking Conference held at the Nawab Nawab Ali Chowdhury Senate Bhaban in the University of Dhaka, on Saturday (10 January).

Mansur noted that Islamic, or Shariah-based banks have historically been competitive, offering attractive profits to depositors.

However, he pointed out that significant sums were looted from this sector due to a failure to ensure corporate governance by specific individuals and institutions - a pointed reference to the unprecedented assault on the banking sector by the ousted Awami League regime's cronies, most notably the S. Alam Group, which secretly took control of at least six banks. All of them were Shariah-based.

Despite these challenges, the Governor highlighted that public trust in Islamic banking remains intact. This was amply demonstrated by the fact that these banks received the highest volume of deposits over the past year.

Specifically, Islami Bank Bangladesh has already begun returning the liquidity support funds it previously received from the central bank.

To prevent future financial crimes and ensure transparency in loan disbursement, the governor announced that Bangladesh Bank has implemented strict control measures.

"A new Islamic Banking Act is currently being drafted to provide a more robust legal framework for the sector," Mansur revealed.

He also called upon Shariah Boards to play a more proactive and courageous role. He urged board members to act independently and without fear of losing their positions, emphasising that their oversight is crucial for the sector's integrity.

Addressing the 'Sukuk' (Islamic bond) market, the governor admitted that the forced sale of the Beximco Sukuk Bond had damaged the market's reputation and eroded investor confidence.

However, the governor noted that the government has been requested to issue new Islamic Sukuk bonds, and preliminary work on this has already commenced.

Concluding his speech, Mansur reiterated that "financial autocracy" has no place in Bangladesh's future.

He stressed that while the central bank is taking the lead, the support of academicians, professionals, and the general public is vital to building a world-class Islamic banking sector defined by governance and accountability.

Academics, researchers, and Islamic Banking experts attended the event.