Bankers’ association expresses concern over Islami Bank instability

The Association of Bankers, Bangladesh (ABB), a platform of bank chief executives, has expressed deep concern over the ongoing instability surrounding Islami Bank Bangladesh PLC, warning that the situation is affecting confidence across the country’s financial sector.

“The situation at Islami Bank is no longer isolated; its negative impact is being felt across the banking sector. As a result, bankers are seriously concerned,” ABB Chairman and City Bank Managing Director Mashrur Arefin expressed the concern after a high-level meeting with the Bangladesh Bank Governor.

He said the central bank governor now views the matter not only as a banking issue but also as a political concern, adding that efforts are underway to resolve the crisis through consensus among stakeholders.

During the meeting, the governor reiterated his firm stance on restoring corporate governance in the banking sector, he said.

He also urged bank chief executives not to come under any political pressure and directed them to ensure accurate and untampered data submission to the Credit Information Bureau (CIB).

The discussion also focused on expanding credit flow in the financial sector.

Arefin said the government and Bangladesh Bank are preparing a Tk 60,000 crore financial package aimed primarily at small, cottage, and medium enterprises (SMEs) under refinancing schemes.

The central bank governor also highlighted irregularities and delays in import-export data reporting, noting discrepancies in declared prices of imported goods, he said.

He stressed the need for commercial banks to verify international commodity prices using reliable online sources before opening Letters of Credit (LCs) to prevent over-invoicing and reduce financial risks.