ABB Welcomes Dissolution of Islami Bank Board, Warns Against 'Mob Culture' in Banking Sector

The Association of Bankers, Bangladesh (ABB), the apex body of bank managing directors and chief executives, has strongly welcomed the central bank's decision to dissolve the board of directors and remove the chairman of Islami Bank Bangladesh PLC.

In an official statement issued on Monday (June 15), the ABB described the intervention as a timely and prudent measure vital for restoring corporate governance and reinstating customer, investor, and stakeholder confidence in the country's largest private commercial bank.

The statement, signed by ABB Chairman and City Bank Managing Director Masrur Arefin, noted that the Islami Bank crisis had taken on political dimensions, threatening the stability of the entire financial sector. Given the bank’s massive footprint—serving nearly 30 million customers and managing the country’s largest remittance network—the ABB had formally conveyed its deep concerns to the Bangladesh Bank Governor on June 10. The association emphasized that recent public unrest and localized protests surrounding the bank had triggered severe anxieties regarding liquidity, corporate governance, and foreign investor trust.

The ABB stressed that immediate efforts must now focus on ensuring accountability, establishing a banking environment free from political interference, and accelerating the recovery of massive non-performing loans (NPLs). Crucially, the bankers' community warned that the emergence of public intimidation or "mob culture" within the banking ecosystem poses an existential threat to the industry. The ABB called upon top-tier government authorities to address this trend with the utmost seriousness to safeguard the discipline and stability of the nation's financial architecture.