Bangladesh Bank has canceled the appointment of all directors, including the chairman, of the board of directors of Islami Bank Bangladesh PLC, under the powers conferred on it under sections 45 and 47(3) of the Bank Companies Act, 1991.
In a notification on Sunday (June 14), Bangladesh Bank said that this decision has been taken in the interests of the bank company, the interests of depositors and the public interest.
At the same time, according to section 47(3) of the Bank Companies Act, 1991, Bangladesh Bank's executive director Md Zahir Hossain has been given the responsibility of exercising all the powers and performing the duties of the board of Islami Bank.
Bangladesh Bank said that he will conduct all the activities of the board until further instructions are given.
Bangladesh Bank has cancelled the appointment of all members of the board of directors, including the chairman, of Islami Bank Bangladesh PLC. The decision was taken on Sunday considering the interests of depositors and public interest.
Bangladesh Bank's assistant spokesperson Shahriar Siddiqui confirmed the matter. He said that the central bank has taken this decision under the powers granted by the Bank Companies Act, 1991.
The central bank says that this step has been taken to ensure good governance of the bank, protect the interests of depositors and maintain stability in banking activities.
Amidst various discussions and criticisms regarding the board of directors and management of Islami Bank in recent times, this decision of Bangladesh Bank is being considered an important event in the banking sector. Those concerned believe that through this step, the central bank will try to normalize the situation by establishing direct control over the management of the bank.
No detailed comments were immediately received from Bangladesh Bank or Islami Bank on this matter.