TBT DESK: The Association of Bankers, Bangladesh (ABB) has welcomed Bangladesh Bank’s decision to dissolve the board of directors of Islami Bank Bangladesh PLC, describing the move as a timely intervention aimed at restoring stability and confidence in the country’s banking sector.

In a statement issued on Sunday by ABB Chairman and Managing Director of City Bank, Mashrur Arefin, the bankers’ body said the central bank’s decision would provide an opportunity for a fresh start at the country’s largest Islamic lender.

ABB noted that it had formally expressed concern to the Governor of Bangladesh Bank on 10 June, citing the growing implications of developments at Islami Bank for the wider financial sector.

The association said the issue had evolved beyond a single institution and had begun affecting confidence across the banking industry. Given the political overtones surrounding the matter, ABB had also advised that efforts be made to resolve the situation through dialogue and consensus among all relevant stakeholders.

The bankers’ organisation described the central bank’s latest action as commendable and expressed hope that it would help restore normalcy at Islami Bank while rebuilding the confidence of depositors, investors and other stakeholders.

“With nearly 30 million customers, a vast deposit and investment base, the country’s largest remittance network and a significant role in international trade finance, the stability of Islami Bank is closely linked to the stability of the national economy,” the statement said.

ABB also voiced concern over recent protest activities surrounding the bank, saying the developments had raised questions among bankers about governance standards, liquidity management and depositor confidence. The situation had also created unease among foreign investors, it added.

The association expressed optimism that the central bank’s intervention would help address those concerns and strengthen overall confidence in the financial system.

Looking ahead, ABB called for meaningful reforms at Islami Bank, including improvements in corporate governance, accountability and transparency. It also stressed the importance of ensuring that banking operations remain free from political influence and urged renewed efforts to recover the institution’s large volume of non-performing loans.

The statement further warned that any form of mob influence over banking institutions could undermine confidence in the sector and pose risks to financial stability.

ABB urged the government to treat the matter with the utmost seriousness, saying a stable and well-governed banking system remains essential for sustaining economic growth and maintaining public trust in the country’s financial institutions.