ABB chief Mashrur Arefin says entire banking sector 'reeling' from Islami Bank turmoil

Bankers want a stable banking system and so does the central bank governor, he says

Mashrur Arefin, chairman of the Association of Bankers Bangladesh (ABB), has called for a swift resolution to the turmoil surrounding Islami Bank Bangladesh, warning that the dispute over its top management is beginning to cast a shadow over the wider banking sector.

Speaking after a bankers' meeting at the Bangladesh Bank Headquarters on Wednesday, he said: "We, the bankers, are worried.

“The ongoing unrest surrounding Islami Bank has started to have a negative impact on the entire banking industry."

Also the managing director of City Bank, Arefin said: "We want a stable banking system. The central bank governor is also in the same position."

The crisis deepened after the central bank appointed Khurshid Alam to head the troubled lender on May 24.

It was followed by hours-long street protests where demonstrators clashed with police outside the bank's headquarters in Motijheel.

On Tuesday, it sought Tk 100 billion in liquidity support from the central bank.

ABB chief Arefin said, "The governor explained the current situation to the bankers, expecting to find a quick solution.”

Quoting Bangladesh Bank Governor Md Mostaqur Rahman, he said: “The issue has now taken on a political dimension.”

“Let's see what can be done and how a compromise can be reached between the two sides," the governor was quoted as saying.