Home
+
Published : 14 Jun 2026, 10:34 PM
Bangladesh Bank has dissolved the board of directors of Islami Bank, bowing to mounting pressure from customer protests and concerns over the bank’s management.
The central bank on Sunday cancelled the appointments of all existing independent directors and removed the board, including its chairman.
In a notification, Bangladesh Bank said Executive Director Mohammad Jahir Hossain would exercise all powers and perform all responsibilities of the board under provisions of the Bank Companies Act.
“Using the powers vested in Bangladesh Bank, and in the interest of the bank, its depositors and the public, Bangladesh Bank has cancelled the appointments of the chairman and all directors of Islami Bank Bangladesh PLC,” the notification said.
The financial market regulator said Mohammad Jahir Hossain had been appointed under Section 47(3) of the Bank Companies Act, 1991 to exercise all powers and discharge all duties previously held by the board.
The move comes after weeks of customer demonstrations and growing concerns over the bank’s ability to meet depositor demands.
Fresh turmoil began at the Shariah-based bank ahead of Eid-ul-Azha when Chairman Zobaidur Rahman and Managing Director Omar Faruk Khan resigned on May 24.
On the same day, Bangladesh Bank selected former deputy governor Khurshid Alam as the bank’s new chairman.
After Eid, a group of protesters began demonstrations outside the bank’s head office, opposing the decision.
They have been carrying out the movement under the banner of the “Customers’ Forum” ever since.
Amid the ongoing unrest, reports emerged that customers had withdrawn around Tk 30 billion from the bank.
Following the appointment of the new chairman, Leader of the Opposition Shafiqur Rahman alleged that there was an attempt to “take control” of the bank.
In response, Finance Minister Amir Khosru Mahmud Chowdhury accused certain groups of trying to “destabilise” the bank for political gain.
Following the discussion in parliament, Bangladesh Bank appointed an observer to the bank on Wednesday, assigning the central bank Executive Director Ashraful Alam to the role.
The protests continued even after the observer was appointed.
The Customers’ Forum held a media briefing on Saturday, placing seven demands, including the removal of the chairman.
Amid continuing tensions, the central bank announced its decision to dissolve the bank’s entire board of directors on Sunday.
