Restoring depositor confidence tops agenda at Islami Bank, says Zahir Hussain

The new administrator says he will focus on routine operations as he assumes full board authority

Mohammad Zahir Hussain, the Bangladesh Bank executive director tasked with overseeing Islami Bank, has said restoring customer confidence is his top priority.

During his maiden visit to Islami Bank headquarters on Monday after his appointment, Zahir clarified that his focus would remain confined to routine operational duties.

"Our priority is to restore customers' confidence. We want to bring the bank back to its previous standing," he said.

The central bank dissolved Islami Bank's entire board on Sunday night amid turmoil over the appointment of a chairman, placing Zahir in charge of all board powers and responsibilities.

Bangladesh Bank said the decision was taken in the “interest of depositors and the public”.

The official regulatory directive, however, did not explicitly define Zahir’s exact designation within the country's largest private commercial bank.

Asked about his title at the bank, Zahir said he could be called chairman, describing the arrangement as a single-member board.

He explained that because the central bank explicitly entrusted him with all powers and responsibilities of the dissolved board, he would handle core operational tasks and address critical banking priorities on a case-by-case basis.

[Updates to follow]