Retired Islami Bankers' concern over ‘Bank Resolution Ordinance’

In a recent executive committee meeting chaired by ARIB President Nurul Islam Khalifa, the association called upon the interim government and the central bank to take immediate steps to restore public trust and ensure transparency in the sector.

The association noted that Islami Bank Bangladesh PLC (IBBL), once the only Bangladeshi bank among the world’s top 1,000, was pushed to the brink of collapse through state-sponsored looting under the past "fascist" administration. They alleged that the S. Alam Group and its associates systematically laundered thousands of crores of taka through fake loans.

"To hide massive losses, the looters manipulated accounts to show hollow profits and siphoned off depositors' money in the name of dividends," the committee stated. They further highlighted that thousands were recruited to these banks from a specific region without any merit-based competition, violating the constitutional rights of educated youth across the country.

The meeting flagged several recent decisions that have triggered a fresh crisis of confidence:

Bank Resolution Ordinance: ARIB demanded the immediate repeal of Section 18(ka) of the Bank Resolution Ordinance, fearing it might be used as a "legal cover" to rehabilitate the controversial S. Alam Group.

Leadership Vacuum: The association expressed alarm over the decision to send the Managing Director and CEO of Islami Bank Bangladesh PLC, Mohammed Monirul Moula (referred to in the context as a dedicated professional), on forced leave under central bank instructions.

Risk of Destabilization: They warned that attempts to reinstate old executives who were allegedly complicit in past looting would further pollute the internal and business environment of the bank.

Stressing that no Islamic bank is currently in a position to absorb further "shocks," the retired bankers placed a 5-point demand to the government and Bangladesh Bank, including-

Immediate repeal of Section 18(ka) of the Bank Resolution Ordinance, removal of collaborators of the "looting group" from all levels of the bank and a ban on their reinstatement, aggressive measures to recover laundered money from abroad, exemplary punishment for the looters and their associates through legal channels, restoration of ownership to the original shareholders from whom the bank was forcibly taken at gunpoint, and the reinstatement of the CEO to reassure customers, reports UNB.

Former Islami Bank official and President of ARIB Nurul Islam Khalifa, former Deputy Managing Directors of Islami Bank Syed Abdullah Mohammed Saleh, Engineer Abul Bashar, Abdus Sadek Bhuiyan, and AAM Habibur Rahman, as well as former executives from Al-Arafah Islami Bank. Former Executive Vice Presidents (EVP) of Al-Arafah Islami Bank,

Engineer Muhammad Golam Sarwar, Mujibur Rahman, Former Executive Vice Presidents (EVP) of Islami Bank PLC, AKM Shahidul Haque Khandakar, Md. Fayezul Kabir and Tofazzal Hossain Khan, among others, attended the meeting, according to a press release.