Published: 08:06 PM, 11 June 2026
Islami Bank's trouble harms entire banking sector: ABB Chairman
Chairman of Association of Bankers Bangladesh (ABB) and City Bank Managing Director Mashrur Arefin has said that the ongoing trouble and unrest in Islami Bank PLC is affecting the country's entire banking sector. Mashrur Arefin made this comment on Wednesday while speaking to journalists after a meeting at Bangladesh Bank headquarters in the capital Dhaka city. He stated that Islami Bank is one of the largest banks in Bangladesh and the prevailing disorder in this bank is an alarming sign for all banks and financial institutions.
However, Mashrur Arefin expressed hope that Bangladesh Bank authorities will soon find a way out to resolve the crisis in Islami Bank. He further said that the central bank is working on credit growth for the private sector. Mashrur Arefin added that a special fund for increasing loan flow in the banking industry will be established with contributions from Bangladesh Bank and private banks.
According to Mashrur Arefin, banks are also working on accuracy of information in export-import papers so that wrong invoicing can be prevented. Some particular sections of the Bank Resolution Act are likely to be amended, Mashrur Arefin told reporters yesterday.
It may be added that hundreds of people called "Islami Bank Customers Forum" demonstrated in recent days in front of the Islami Bank corporate office in the capital's Motijheel area and clashed with law and order forces. As a result Islami Bank's clients are currently suffering from panic about their deposited money. Financial sources have informed that a lot of Islami Bank clients have in the meantime withdrawn their savings which might put the bank in cash crisis.
