Bangladesh Bank and the interim government are undertaking significant efforts to restructure the country’s banking sector, focusing on recovering both local and foreign assets embezzled by corrupt individuals. Officials have confirmed that these assets, laundered abroad, are being targeted for repatriation as part of a broader initiative to bring the financial sector up to international standards. The government emphasized its commitment to reforming the financial sector, acknowledging that the process is complex and time-consuming. A key element of this strategy will be the establishment of a banking commission tasked with investigating each implicated bank, uncovering the full extent of the corruption, and developing an action plan, according to the Chief Adviser’s press wing. This plan, which can be implemented within six months, aims to overhaul the sector to ensure compliance with global banking norms. The aim of Bangladesh Bank and the government is to be capable of complying with all international standards and building a strong banking sector. However, international technical assistance and funding will be required from the beginning to the end of the activities to achieve this objective. Read more: Bangladesh Bank reconstitutes boards of 3 banks, inc. two controlled by S Alam Group The reforms come in response to revelations that unscrupulous businessmen and influential figures have embezzled vast sums from the banking sector, laundering the funds abroad through fraudulent activities. Preliminary estimates suggest the total embezzled amount could exceed Tk 1 lakh crore, though the exact figure is still being determined. Significant steps have already been taken, with reforms initiated in several banks linked to the scandal. The boards of Islami Bank, Social Islami Bank, National Bank, United Commercial Bank, Global Islami Bank, and Union Bank have been reconstituted as part of the restructuring efforts. Similar measures will be implemented across other affected banks and financial institutions. The government has also sought assistance from foreign agencies to track and repatriate the laundered funds. As the new management teams take control, they will be responsible for gathering accurate data on the embezzled amounts and leading the recovery efforts. Read more: Businesses agree with central bank's steps against bank robbers: DCCI

Five people including four officials of Islami Bank Bangladesh Limited (IBBL) PLC sustained bullet injuries in a clash between two groups of the bank in front of its head office in Motijheel area of Dhaka on Sunday (August 11, 2024). Four of the injured identified as officials Mamun, Abdur Rahman, Baki Billah and godown guard Shahfiullah Sardar are now undergoing treatment at a hospital. Sources said some officials under the banner of ‘Anti-Discrimination Banker Society’ were trying to hold a rally in front of the head office in the morning. Read more: Islami Bank continues to reject cheques of ‘suspicious companies’ Some bank officials, who work for the S Alam Group, barred them from holding the rally, resulting in a scuffle between them, they said. At one stage, shots were fired at the protesters, leaving five people injured, they said. A tense situation has been prevailing in and around the bank following the incident. Motijheel Police Station’s Officer-in-Charge Abul Kalam Azad could not be reached over mobile phone despite repeated attempts. Read more: Executives appointed by S Alam will not be allowed to enter Islami Bank: CBA of the bank

A two-day Business Development Conference of Islami Bank Bangladesh PLC began on Saturday at a hotel in the capital. Dr. Tanveer Ahmad, vice chairman of the Bank inaugurated the conference as chief guest while Mohammed Monirul Moula, managing director and CEO of the bank presided over the program, said a press release. Dhaka Int’l trade fair begins Sunday Mohammad Solaiman, FCA, Chairman, Audit Committee, Professor Dr. Mohammad Saleh Jahur, Chairman, Risk Management Committee, Md. Joynal Abedin, Professor Dr. Mohammad Sirajul Karim, Syed Abu Asad, Mohammad Quamrul Hasan, Professor Md. Fashiul Alam, Khurshid-Ul-Alam, Mohammed Nasir Uddin, FCMA, Borhan Uddin Ahmed, Abu Sayeed Mohammad Quasem, & Showkat Hossain, FCA, Directors and Maolana Obaid Ullah Hamzah, Chairman, Shariah Supervisory Committee of the Bank attended the program as special guests. United Aygaz holds daylong gathering for distributors, retailers in Ctg Speakers said that Islami Bank paid the highest tax in the govt. exchequer. It has been recognized as the country’s 'Strongest Islamic Retail Bank'. They said that 23 per cent of the country's total remittances came through the Islamic Bank alone. BGMEA President emphasizes alignment of education with industry needs Islami Bank received the Bangladesh Bank Remittance Award-2023 for collecting the highest remittance and the "Payment Excellent Award 2023" by world-renowned payment gateway VISA, read the release.

Islami Bank Bangladesh Plc provided Tk 1.25 crore as a sponsor of a special convocation of the Dhaka University. Professor Dr. Md. Akhtaruzzaman, Vice Chancellor of the university, received the cheque from the bank's Managing Director (Current Charge) Muhammad Qaisar Ali and Deputy Managing Director Md. Akiz Uddin on Thursday. Read : Dhaka University's IBA wins 'Battle of Minds' competition The university treasurer Professor Mamtaz Uddin Ahmed, registrar Probir Kumar Sarker and director of accounts Mohammad Shaiful Islam and Islami Bank Head of Brand and Communication Nazrul Islam were present during the occasion, said a press release. Read : Ex-Dhaka University professor Rowshan Jahan passes away

Noakhali Zone of Islami Bank Bangladesh Thursday organised the "Agent Banking Business Development Conference" and "Workshop on Prevention of Money Laundering and Terrorist Financing." Mohammed Monirul Moula, managing director and chief executive officer of the bank, addressed the conference as the chief guest in Noakhali. Read: Islami Bank remittance clients to get motorcycles Md Omar Faruk Khan, additional managing director, and Mohammed Shabbir, deputy managing director, also spoke at the programme. Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic Shariah. It is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.

Some private sector banks in Bangladesh are in deep crisis because of lack of adequate liquidity and are being forced to borrow money from state-owned Sonali Bank at a 9 percent interest rate to stay afloat. Islami Bank, Al-Arafah Islami Bank and National Bank are borrowing money from Sonali Bank at a 9 percent interest rate, which is the highest commercial lending rate at present. Economists and banking sector insiders say that it means the sector is passing through a hard time due to higher non-performing loans, lack of good governance and serious corruption in the management of the respective banks. They say at present the call money rate is between 6-7 percent while banks are borrowing at 9 percent rate, which proves the crisis has mounted in these banks. They also say the troubled banks have no other options, but to borrow money. Also read: 5 held for spreading rumors on social media about Islami Bank, S Alam group Both such borrowing and lending are very risky considering the ability of investment of these banks, they say. BRAC Bank Chairman Dr Ahsan H Mansur told UNB that some banks have lost their customers’ trust due to their mismanagement. “As a result, people have withdrawn money from those banks,” he said. Giving an example he said that the deposit of BRAC Bank increased by 33 percent in the last quarter while the deposit volumes of many banks decreased. Also read: Scam-hit Islami Bank earns operational profit in 2022, Basic Bank reports loss Usually, banks charge a higher interest rate to lend to other banks while considering it risky, he said. On 13 December 2022, the Sonali Bank’s Board of Directors approved the investment of Tk200 crore in fund placement in favour of Islami Bank Bangladesh Limited and Tk75 crore in favour of Al-Arafah Islami Bank Limited at a 9 percent lending rate for a period of 90 days. On the same day, the bank's Board also agreed to the proposal to extend the term of the Tk150 crore loans to National Bank for another six months at 9 percent interest subject to payment of the previous interest. It is a normal practice that when a bank faces a liquidity crisis it borrows from another bank via the interbank money market. Read More: 60% bank sub-branches must be outside city corporations, municipal areas: Bangladesh Bank But the liquidity situation in three private sector banks is so critical that they are forced to borrow from another bank at the highest commercial lending rate. According to the Bangladesh Bank's guidelines, banks can charge a maximum of 9 percent interest on all types of loans other than consumer loans such as auto loans and personal loans, in which case the highest lending rate ceiling is 12 percent. Professor Dr Abul Barakat told UNB that any short-term borrowing at such a rate is not harmful, but it could create trouble while getting such loans will be lingering. He said banks sometimes face a liquidity crisis, then it is required to borrow to meet the instant crisis. But a 9 percent lending rate for banks is high. Read More: Bangladesh Bank expects first instalment of $4.5 b IMF loan to arrive by next month: Spokesman “Then how much a bank would have to charge against any commercial loans,” he asked. Sector insiders say corruption and lack of good governance are the main reasons behind such a crisis. Some questioned the role and the ability of the central bank of Bangladesh to regulate commercial banks that fail to check corruption.

Detectives in a drive on Sunday arrested five people from different parts of the city, for spreading rumors on social media about the reserve crisis of Islami Bank and S Alam group. Harun-or-Rashid (DB), additional police commissioner of Dhaka Metropolitan Police (DMP), disclosed the information when talking at a press briefing held at DMP media centre on Monday. The arrestees were identified as Mohammad Nur-un-nabi, Afsar Uddin Roman, Abu Syed Saju, Swadhin Mia and Abdus Salam. Also Read: Scam-hit Islami Bank earns operational profit in 2022, Basic Bank reports loss When briefing, Harun said the arrestees were involved in spreading rumors through social media from home and abroad. Besides, they were also involved in discouraging the expatriates from sending remittances, he said. “We have got the names of all who were involved in it and action will be taken against them soon,” he added. Former director of Islami Bank and officials were also involved in the syndicate. Also Read: Observers appointed for S Alam Group-controlled IBBL and FSIB Replying to a question, whether there is any involvement between the syndicate members or any political parties, the DMP commissioner said “We have found involvement of Jamaat-Shibir men in the group.” He also urged people not to pay any heed to the rumours as currently there is a sufficient foreign reserve. Also Read: Tk 30,000cr loan from Islami Bank: HC asks S Alam Group to explain reports Mentioning that the bankruptcy of banking sectors and financial institutions is nothing but a rumour, Harun also asked people to refrain from withdrawing money from the banks.      

Islami Bank Bangladesh Limited (IBBL) Tuesday organised a meeting of its Shariah Supervisory Committee online. Professor Mohammad Gias Uddin Talukder, chairman of the committee, presided over the meeting. Sayeed Ahmed, vice-chairman, Professor Mohammad Abdus Samad, member secretary, of the committee, and Mohammed Monirul Moula, managing director and chief executive officer of Islami Bank, attended the meeting. Read more: Islami Bank Cumilla, Noakhali hold Shariah compliance webinar Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic Shariah. It is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange.

The High Court today ordered the authorities concerned to probe into the much talked about and reported “loan scam” in three banks – Islami Bank, Social Islami Bank Ltd and First Security Islami Bank – and submit the report within next four months. The HC bench of Justice Md Nazrul Islam Talukder and Justice Khizir Hayat passed the order after issuing a Suo Motu (voluntary) rule following newspaper reports. The court directed Bangladesh Bank’s Bangladesh Financial Intelligence Unit (BFIU), Anti-Corruption Commission (ACC) and Bangladesh Police’s Criminal Investigation Department (CID) to submit the probe report. Read: Basic Bank loan scam: HC orders ACC to complete probe in 3 months At the same time, the court ordered the authorities of these three banks to submit the list of bank officials involved in approving loans worth thousands of crores of taka. The HC also issued a rule, asking why the inaction of the banks to take action against those responsible for approving loans worth thousands of crores and S Alam Group’s Tk 30,000 loan should not be declared illegal. The rule also asked why no instructions should be given to take action against those responsible. Read: Loan default case: 12 Pabna farmers get bail Besides, the HC bench asked S Alam Group to explain the newspaper reports that said the company took Tk 30,000 crore from Islami Bank. The court also set April 5 next year for the hearing and asked to submit the report after verifying the authenticity of the news published. Advocate Khurshid Alam Khan for ACC and Deputy Attorney General AKM Amin Uddin Manik for the state were present in the court. Read More: Loan default case: 12 Pabna farmers get bail On November 24, a report was published in the daily Prothom Alo stating that an “unscrupulous group” had taken a loan of Tk 2,000 crore from Islami Bank Bangladesh Limited (IBBL) by opening two companies with fake addresses and papers. In all, about Tk 7,000 crore loans have been approved from Islami Bank in various ways in the name of eight companies this year. The maximum amount of loan, Tk 2,460 crore, was withdrawn from November 1 to 17, according to the newspaper report. Read More: Women entrepreneurs repay loans in most cases: Commerce Minister In the same way, the companies have withdrawn Tk 2,320 crore loan from Social Islami Bank Limited (SIBL) and the First Security Islami Bank. As a result, the debt of the companies with interest to these three banks has increased to Tk 9,500 crores, it added. Meanwhile, another report published in the New Age newspaper on November 29 said that S Alam Group alone has taken loan of Tk 30,000 crore from Islami Bank. Read More: Payment of Hajj Finance Loan and DPS Instalment through Nagad

Islami Bank Bangladesh has won the Institute of Cost and Management Accountants of Bangladesh (ICMAB) Best Corporate Award 2021 in the private commercial bank (Islamic operation) category. Muhammad Qaisar Ali, additional managing director of the bank, received the award from Commerce Minister Tipu Munshi at a hotel in the capital Thursday (December 01, 2022), according to a media statement. JQM Habibullah, additional managing director and company secretary of Islami Bank, was also present. Read more: Islami Bank opens Islampur branch in Jamalpur Professor Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission, Md Jashim Uddin, president of the Federation of Bangladesh Chambers of Commerce and Industry, Md Mamunur Rashid, president of ICMAB, and Md Abdul Aziz, chairman of Corporate Award Committee of ICMAB, also joined the event. Islami Bank is a joint venture public limited company engaged in commercial banking business based on Islamic shariah. Established in 1983 as the first Islamic bank in Southeast Asia, it is listed on the Dhaka Stock Exchange and Chittagong Stock Exchange. Read More: BAT Bangladesh scoops up ‘ICMAB Best Corporate Award’ for sixth time