Bangladesh Bank has appointed an observer to Islami Bank Bangladesh Limited amid concerns over its operations and liquidity, the central bank says.
Mohammad Ashraful Alam, an executive director at the central bank, will serve as the observer under the Bank Company Act, 1991.
The move comes as the bank faces an operational and liquidity crisis, alongside controversy surrounding the appointment of its new chairman.
In a statement, Bangladesh Bank said the decision aims at strengthening oversight, protecting depositors’ interests and ensuring stability in the banking sector.
The observer will monitor the bank’s overall operations and governance framework.
Alam will attend meetings of the bank’s board of directors and participate in other relevant activities. He has also been tasked with reporting his observations to the central bank.
The regulator said the appointment is part of broader efforts to enhance transparency, accountability and good governance within the banking system.
“By placing an observer at Islami Bank, the regulator aims to ensure closer monitoring of management decisions and operational activities, thereby reinforcing depositor confidence and institutional stability,” the statement said.
