Bangladesh Bank dissolves board of ICB Islamic Bank

Mazibur Rahman has been appointed to the board of directors and as managing director of the bank

Bangladesh Bank has dissolved the board of ICB Islamic Bank.

Mazibur Rahman, executive director of Bangladesh Bank, has been appointed to the board of directors and as managing director of the bank.

Arif Hossain Khan, a spokesperson and executive director of the central bank, confirmed the matter to bdnews24.com.

However, Mazibur had served as the managing director of the bank before the board was dissolved.

Arif said, “The central bank has given the responsibility of the board of directors as well as managing director of the bank to Mazibur Rahman in the interests of the depositors and the bank itself to ensure good governance."

The central bank dissolved the ICB Islamic Bank’s board on Wednesday, he added.

Arif said that serious irregularities have taken place in the management of ICB Islamic Bank. Bangladesh Bank has conducted an inquiry and prepared a report to this end. A capital and provisioning shortfall has also emerged.

"In addition, the bank is also having investment issues as it has suffered huge losses due to irregularities and money laundering for a long time.”

The central bank changed ICB Islamic Bank’s managing director in December 2024. At that time, Mazibur was appointed as the new managing director in place of Muhammad Shafiq Bin Abdullah who was accused of irregularities and corruption.

At the Annual Banking Conference on Wednesday, Bangladesh Bank Governor Ahsan H Mansur said: “The central bank will intervene if the board does not work properly. It's an ongoing process. The reform of the board is not yet complete. We have already reconstituted boards to 11 banks in the first round. Two more banks were given boards several weeks ago."

ICB Islamic Bank began its journey in Bangladesh in 1987 as Al-Baraka Bank. In 1994, it became a “troubled bank”.

Bangladesh Bank then introduced the practice of appointing supervisors at defaulting banks to restore discipline in the sector.

Later in 2004, it started operating as a commercial bank under the name of Oriental Bank.

Following the detection of massive irregularities, the central bank dissolved the Oriental Bank’s board of directors in June 2006.

In 2008, the bank was renamed as ICB Islamic Bank.