Bangladesh Bank provides additional Tk 2,500 crore support to Islami Bank to tackle liquidity crisis

PNN News Desk. Dhaka

Bangladesh Bank has provided an additional Tk 2,500 crore support to Islami Bank Bangladesh PLC to address its liquidity crisis. The bank’s acting Managing Director, Md. Altaf Hossain, said that the newly received funds have not yet been needed for use.

Speaking to journalists on Monday, he said that continuous support from the central bank has helped stabilize the bank’s cash flow situation to some extent. He also expressed hope that this assistance would play an important role in ensuring smooth customer transactions and restoring confidence.

Md. Altaf Hossain said that although there had been a recent trend of deposit withdrawals, signs of improvement are becoming visible. According to information from various branches, the rate of account closures has decreased significantly compared to before, indicating a gradual return of customer confidence.

Meanwhile, the banking regulator has also made major changes in the bank’s governance structure. Yesterday, Bangladesh Bank dissolved Islami Bank’s board of directors and relieved the existing board members, including the chairman, from their responsibilities.

According to central bank sources, the bank fell into severe liquidity pressure due to rising deposit withdrawal pressure and growing uncertainty among customers. In this situation, special administrative measures have been taken to stabilize operations.

To control the situation, Bangladesh Bank Executive Director Mohammad Zahir Hossain has been appointed as the administrator of the bank. He will oversee the operations of the country’s largest Shariah-based bank and take necessary steps to ensure financial stability.

Banking sector analysts say that this central bank support and administrative restructuring may help restore customer confidence in Islami Bank. However, in the long term, ensuring transparency, good governance, and effective management will be essential for stability.