Bangladesh Bank Dissolves Islami Bank Board, Appoints Administrator

Bangladesh Bank has dissolved the board of directors of Islami Bank Bangladesh PLC and appointed a new administrator. The central bank has named its Executive Director Mohammad Zahir Hossain as the new administrator of the bank.

Bangladesh Bank confirmed the development in a statement issued on Sunday.

The central bank said it took the decision under Sections 45 and 47(3) of the Bank Company Act, 1991, exercising its authority in the interest of the bank, depositors, and the public. It added that the appointment of the chairman and all members of Islami Bank’s board of directors has been cancelled.

Under the same legal provisions, Executive Director Mohammad Zahir Hossain has been assigned to exercise all powers and responsibilities of the board.

Earlier, on May 24, Bangladesh Bank appointed Khurshid Alam, who lost his post as deputy governor after the July movement, as chairman of the bank following protests by central bank officials.

The appointment came after the resignation of then-chairman Zubayerur Rahman.

Khurshid Alam was appointed deputy governor of Bangladesh Bank in February 2024 on a three-year contractual basis. However, after the Awami League government lost power in August 2024, he and three other senior central bank officials were forced to resign.