Written by The Banking Post
The ongoing merger of five Islamic banks has sparked strong calls from financial experts and bankers to protect the interests of small shareholders, who they say have been hit hardest by years of mismanagement and regulatory lapses.
Speaking at a graduation ceremony hosted by the Bangladesh Institute of Bank Management (BIBM) on Friday, several industry insiders criticized the central bank’s failure to properly supervise troubled banks, warning that the sector’s instability has already eroded investor and depositor confidence.
“How can a single company take over five Islamic banks? Where was the central bank then?” questioned Dr. M A Baqui Khalily, Professor at the University of Asia Pacific. He further asked why small shareholders should lose their investments without accountability, urging stronger regulatory oversight.
Pubali Bank Managing Director Mohammad Ali admitted that political pressure in loan approvals has long been a problem in the banking sector. “Almost every managing director has faced external and internal pressure,” he said, stressing the need to shield banks from political influence.
Bangladesh Bank Deputy Governor Nurun Nahar acknowledged that banks ignoring central bank circulars and guidelines have landed in trouble. “Our risk-based supervision now operates under a single window, which will help ensure better governance,” she assured.
Other speakers, including AKM Rezaul Karim, Director of BIBM; Mosleh Uddin Ahmed, Managing Director of Shahjalal Islami Bank; and Kazi Md Wahidul Islam, Managing Director of Rupali Bank, echoed similar concerns about the sector’s governance and reform needs.
The event concluded with the awarding of certificates to graduate bankers who completed BIBM’s certification courses. Nurun Nahar, also Chair of the BIBM Executive Committee, attended as chief guest, while Professor Khalily delivered the keynote lecture. The session was chaired by S.M. Abdul Hakim, Director-General of BIBM.
