The Bangladesh Bank has firmly stated that no form of political interference will be allowed in the affairs of the country’s largest Shariah-based lender, Islami Bank Bangladesh PLC, amid escalating tensions surrounding its governance structure and ownership influence.
Speaking on Monday, 22 June, central bank spokesperson Arif Hossain Khan emphasised that the stability of Islami Bank is crucial not only for its customers but for the entire financial sector. He warned that any deterioration in the bank’s condition could have a systemic impact on Bangladesh’s broader banking industry.
“Islami Bank is a significant institution in the financial system. If it is weakened, the repercussions will be felt across the sector. For that reason, a credible, competent and transparent board will be formed without delay,” he said.
The statement comes at a time of renewed agitation by a group identifying itself as the Islami Bank Conscious Customers’ Forum. Earlier on Monday morning, members of the group staged a sit-in in front of the Bangladesh Bank headquarters, demanding the restructuring of the bank’s board of directors and the removal of individuals allegedly linked to the influential S Alam Group.
The protesters argued that no representatives associated with the S Alam Group should remain on the board. They further demanded the reinstatement of individuals who were involved with the bank prior to 2017, when ownership changes significantly altered its governance landscape.
They issued a 24-hour ultimatum for the formation of a new board, warning of intensified demonstrations if their demands were not met.
Earlier, on 16 June, the same group submitted a memorandum to the Bangladesh Bank governor, reiterating demands for immediate board restructuring and the transfer of shares linked to the S Alam Group back to previous owners.
The movement itself began gaining momentum on 1 June, initially centred on calls for the resignation of the outgoing chairman Khorshed Alam. As pressure mounted, the Bangladesh Bank dissolved the entire board on 13 June, appointing its executive director Md Zahir Hossain to oversee the bank’s operations temporarily.
Timeline of key developments
Date
Event
1 June
Protests begin demanding chairman’s resignation
13 June
Bangladesh Bank dissolves Islami Bank board
16 June
Memorandum submitted to governor for restructuring
22 June
Sit-in held; Bangladesh Bank rules out politicisation
Officials maintain that the central bank’s priority is to restore governance stability and protect depositor confidence while ensuring that the institution remains insulated from external political or corporate influence.
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