Written by The Banking Post
The Association of Bankers, Bangladesh (ABB), a platform of bank chief executives, has expressed serious concern over the ongoing instability surrounding Islami Bank Bangladesh PLC, warning that the situation is shaking confidence across the country’s financial sector.
Following a high-level meeting with the Bangladesh Bank governor, ABB Chairman and City Bank Managing Director Mashrur Arefin said the issue is no longer seen as confined to a single bank.
“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,” he said.
Arefin added that the central bank governor now considers the matter not only a banking issue but also one with broader political implications. According to him, discussions are underway to reach a consensus among stakeholders to stabilize the situation.
During the meeting, the governor reiterated his focus on strengthening corporate governance across the banking sector. He also urged bank chief executives to resist political pressure and ensure that accurate, untampered data is submitted to the Credit Information Bureau (CIB).
Broader issues in the financial system were also discussed, including plans to expand credit flow. Arefin said the government and Bangladesh Bank are preparing a Tk 60,000 crore support package, mainly targeted at small, cottage, and medium enterprises (SMEs) through refinancing schemes.
The governor also raised concerns about irregularities and delays in import-export data reporting, pointing to discrepancies in declared prices of imported goods.
He stressed that commercial banks should verify international commodity prices using reliable online sources before opening Letters of Credit (LCs), in a bid to prevent over-invoicing and reduce financial risks.
