United News of Bangladesh

Bangladesh Bank Governor Md. Mustaqur Rahman on Tuesday affirmed that the operations of Sammilito Islami Bank, formed through the merger of five Shariah-based banks, will continue as planned. The Governor also sent a stern warning to those involved in the misappropriation of funds from these banks during the tenure of the fallen Awami League government, stating that the government will ensure they face legal punishment. Bangladesh Bank buys $25 million from banks to stabilize market Governor Rahman shared these directives during a meeting with the newly appointed administrators of the five banks and senior officials of the central bank at his office on Tuesday, according to meeting sources. During the meeting, the Governor instructed officials to expedite the appointment of a Managing Director for Sammilito Islami Bank. He confirmed that the current Board of Directors will remain in place to oversee the transition. In a move to stabilize the economy, the Governor emphasized the revival of industrial units under the jurisdiction of these five banks. New Bangladesh Bank Governor outlines vision for investment-led growth "Initiatives must be taken to restart factories that are currently non-functional. We must ensure these units return to production," he reportedly said, adding that the central bank would assist in clearing any outstanding foreign dues of these institutions to facilitate operations. Officials present at the meeting noted that the Governor’s clear stance has dispelled the prevailing confusion and rumors regarding the future of the merger. This follows a similar message delivered by the Governor on Sunday during a meeting with representatives from the Association of Bankers, Bangladesh (ABB). In that meeting, he asserted that ongoing reforms in the banking sector would continue unabated and that he would not succumb to any political pressure. Furthermore, in alignment with the current government’s electoral pledge to create 10 million jobs within the first 18 months, the Governor pledged policy support to revive factories that were shut down due to recent political shifts. Following the fall of the Awami League government, the interim administration merged five struggling banks—EXIM, Social Islami, First Security Islami, Union, and Global Islami Bank—to form Sammilito Islami Bank. The new entity began its journey with a total capital of Tk 35,000 crore. Of this, the government provided Tk 20,000 crore, while the remaining Tk 15,000 crore will be sourced from a dedicated fund for depositors. Additionally, an initiative is underway to pay out Tk 12,000 crore from the Deposit Insurance Fund to approximately 78 lakh depositors, with each receiving up to Tk 2 lakh.

Transparency International Bangladesh (TIB) has expressed concern over how independently the newly appointed Governor of Bangladesh Bank will be able to discharge his responsibilities, rising above conflicts of interest. The organisation has also raised the question of how a readymade garment and real estate entrepreneur, who rescheduled loans for his own company under special consideration, will be able to perform his duties impartially as Governor of the central bank. New pay scale could fuel bribery 'premiums' without reforms to public admin: TIB In a statement issued  on Thursday, TIB Executive Director Dr Iftekharuzzaman said the newly appointed governor’s experience in the banking sector is mainly linked to being a borrower, later a loan defaulter, and subsequently benefiting from loan rescheduling under special consideration. He said the governor has also played significant roles within influential business lobbies, including the readymade garment sector, the real estate sector, ATAB and the Dhaka Chamber. Dr Iftekharuzzaman questioned whether a governor appointed in haste would be able to meet public expectations of restoring a banking sector that fell into disarray during ‘an authoritarian kleptocratic regime’ while remaining free from the influence of business lobbies, borrowers and loan defaulters. TIB slams draft media ordinances as ‘mockery’ of free press He said nearly 60 percent of Members of Parliament and 62 percent of Cabinet members are primarily businesspersons while around 50 percent of MPs are loan defaulters with outstanding recoverable loans exceeding all previous records. In such a context, he asked how risky it could be for the banking sector to appoint ‘a loan-defaulting businessperson’ who has benefited from loan rescheduling under special consideration and from policy capture in sectors such as the readymade garment industry and REHAB. Through this appointment, he questioned what message is being sent both nationally and internationally and urged the government to reflect carefully on these issues. Referring to this unprecedented appointment—the first time in the country’s history that a businessperson has been appointed Governor of Bangladesh Bank—Dr. Iftekharuzzaman said such a decision risks turning the central bank once again into an instrument of business lobbies dependent on defaulted loans and political connections, rather than safeguarding national interest, as was the case during the authoritarian kleptocratic regime. He said, “The government must also consider how prudent it was to entrust the central bank’s leadership to a member of the election management committee of the ruling party. Moreover, the BNP, in its election manifesto, pledged to ensure good governance in the banking sector, discipline in financial institutions, and transparency and oversight. Appointing an individual burdened with conflict of interest as Governor of Bangladesh Bank constitutes a clear breach of that electoral commitment. The current government is well aware of the fragile state of the banking sector during the fallen authoritarian regime when partisan considerations and facilitation of vested interest groups by Bangladesh Bank contributed to large-scale money laundering, soaring defaulted loans, and overall economic vulnerability, he added. At a time when ensuring good governance in the financial sector including attracting foreign investment is critically important amid ongoing economic challenges, the effectiveness of this appointment remains questionable, said Dr Iftekharuzzaman.

Bangladesh Bank on Thursday announced that it will take administrative action against officials involved in Wednesday’s ‘mob’ incident at its headquarters, according to the bank’s Human Resources (HR) policy. Arief Hossain Khan, Executive Director and Spokesperson of Bangladesh Bank, made the disclosure during briefing reporters held at the central bank on Thursday. Responding to a query from journalists, the spokesperson said the newly appointed Governor has pledged to establish good governance within the institution. "Action will be taken against those involved in 'mob culture' in accordance with the existing HR policy," Khan said. Earlier in the day, the new Governor officially assumed his duties and immediately held a high-level meeting with senior officials. Later, the press briefing was organised to share the outcomes of the meeting. During the meeting, the Governor urged officials to actively cooperate in initiatives aimed at reopening closed factories. He emphasised that the central bank would provide the necessary policy support to make the economy more growth-oriented and focused on employment generation. The spokesperson further noted that the Governor’s primary focus would be restoring discipline and ensuring a stable environment for the country's financial sector.

In a dramatic turn of events marked by confusion and protests, Md Mostaqur Rahman was appointed Governor of Bangladesh Bank within a day, replacing Ahsan H Mansur without prior announcement. Mostaqur received his appointment on Wednesday and joined office on Thursday, ending intense speculation that began earlier in the day over a possible change in the central bank’s top post. The 13th governor, Ahsan H Mansur, reportedly had no prior knowledge of his removal. Talking to reporters while leaving the central bank premises amid pressure from a section of officials and employees, he said, “I know nothing about this process. I hear that I am being removed. I did not resign. Resignation is not an issue; it would take me two seconds to resign.” Shortly after his departure, Adviser to the Governor Ahsan Ullah was also reportedly forced to leave the central bank. Within two hours, the Ministry of Finance issued a gazette notification announcing Mostaqur’s appointment. The ministry, however, did not provide a specific explanation as to why Mansur — who had one year remaining in his contract — was replaced abruptly, or why a businessman was chosen over an economist to lead the central bank. When asked why a routine institutional process took such a dramatic turn, Finance Minister Amir Khosru Mahmud Chowdhury said, “A new government has taken office. Many things are changing. Accordingly, the governor has been appointed through the normal process.” A Bangladesh Bank assistant director, speaking on condition of anonymity, said members of the Bangladesh Bank Officers’ Welfare Council had been agitating over various demands. “There was also significant pressure from the ruling party wing. Their demand was that the new government cancel all contractual appointments at Bangladesh Bank and appoint new individuals. The change in governor appears to be the culmination of that process,” he said. Mostaqur is the first businessman to be appointed governor, a position traditionally held by senior bureaucrats or economists. According to Bangladesh Bank, he holds an FCMA degree from The Institute of Cost and Management Accountants of Bangladesh (ICMAB). Sources at the central bank revealed that Mostaqur has no prior experience in a senior role at any bank or financial institution. He currently serves as the Managing Director of a sweater manufacturing company and is an active member of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Besides, Mostaqur holds affiliations with the Real Estate and Housing Association of Bangladesh (REHAB) and the Association of Travel Agents of Bangladesh (ATAB). He is also a member of the Dhaka Chamber of Commerce and Industry and has previously worked for a period at the Chittagong Stock Exchange. Mostaqur also served as the 23rd member of the 41-member central election management committee of the Bangladesh Nationalist Party (BNP) for the 13th parliamentary elections. Speaking to reporters on his first day at office, Mostaqur said, “Let me formally assume charge and begin work. Then everything will be said.” The leadership change comes at a time when Bangladesh’s foreign exchange reserves have increased from $25 billion to $35 billion following the fall of the Awami League government. The current reserve level is sufficient to cover six months of imports, compared to the three-month benchmark generally considered safe. After the August 5, 2024 student-led uprising that led to the ouster of the Awami League government, investigations by Bangladesh Bank revealed massive loan irregularities amounting to Tk 6.5 lakh crore. To manage the crisis, five Shariah-based Islamic banks were merged. Mansur, a former official of the International Monetary Fund (IMF), had also initiated efforts to recover laundered funds from abroad. Economists have expressed concern that appointing a businessman as governor may create potential conflicts of interest. “The biggest challenge for the new governor will be conflict of interest. How a businessman balances economic management with business interests is now the key question,” said former Bangladesh Bank chief economist Mustafa K Mujeri. Selim Raihan, executive director of the South Asian Network on Economic Modeling (SANEM), said the appointment raises concerns about the government’s commitment to banking sector reforms. ‘Govt moves to remove BB Governor, appoint successor’  “Appointing a cost accountant and businessman as central bank governor naturally raises questions — is the government truly committed to reforming the banking sector? The central bank is not only a monetary policymaker; it is also the regulator and supervisor of banks. Placing someone with a business background in such a critical role risks potential conflict of interest,” he said. He pointed out that Bangladesh’s banking sector is already grappling with high non-performing loans, governance deficits and political interference. “In this context, transparency, professional independence and regulatory experience were crucial considerations. Whether the new appointment meets those expectations or sets back reform efforts remains to be seen.” Mansur had been working to amend the Bangladesh Bank Order to strengthen the central bank’s full autonomy, a move that would restrict the finance ministry’s discretionary power in appointing governors. Economists fear the sudden leadership change could slow down or halt that reform process.  

Bangladesh Bank has announced the immediate transfer and reassignment of five senior officials in the wake of Wednesday’s leadership change, according to an official directive. The central bank’s official directive, signed by Director (HRD-1) Md Tarikul Islam, affect four directors and one additional director, with several key departmental moves at the institution’s headquarters. ·         Md. Zabaidul Islam, Director, has been shifted from Human Resources Department-1 to the Financial Institutions Inspection Department. He is to join the new department after completing his current recreational leave. ·         Md. Shahid Reza, Director, moves from the Financial Institutions Inspection Department to Human Resources Department-1. ·         Md. Bayezid Sarkar, Director, has been reassigned from Banking Regulation and Policy Department-1 to the Motijheel Office, where he will serve as In-charge Executive Director (Core). ·         Gazi Md. Mahfuzul Islam, Director, previously acting as In-charge Executive Director at the Motijheel Office, is transferred to Banking Regulation and Policy Department-1. ·         Md. Kamrul Islam, Additional Director, has been moved from the Governor’s Office to the Sadarghat Office. Bangladesh Bank extends loan rescheduling deadline for raw jute exporters All changes are effective immediately, reflecting the central bank’s broader administrative realignment amid a transition in top leadership.

Finance Minister Amir Khosru Mahmud Chowdhury on Wednesday said the change in the governorship of Bangladesh Bank was part of a broader administrative reshuffle undertaken by the new government to implement its priorities and policy agenda. “Changes have not taken place in Bangladesh Bank only; they have occurred in many places also,” he told reporters at the Secretariat in response to a question regarding the replacement of the central bank governor. Economy suffering from ‘overregulation’, says Amir Khosru “After assuming office, a new government has its own priorities and programmes. Changes are being made where necessary to realise those priorities. This is a normal process,” he said. Responding to a query about the considerations behind the governor’s removal, the minister said there was nothing unusual about the decision. “A new government has come in with its own preferences and policy thinking. Naturally, adjustments will be made in different institutions to align with its programmes,” he said, adding that such changes are neither isolated nor exceptional. “It is not only Bangladesh Bank where changes have been made. Many other places have seen changes, and more may follow if required. This is very normal in the context of a new administration,” he said. Development benefits must reach people’s doorsteps: Khosru The minister emphasised that the government’s own programme, preferences and policy orientation would guide administrative decisions. “Wherever necessary to implement the government’s programme and thinking, changes will be brought.” Earlier, the government removed Ahsan H Mansur from the post of governor of Bangladesh Bank and appointed Md Mostakur Rahman as the new governor. The change comes as the government reiterates its commitment to pursuing its economic agenda in coordination with key financial institutions.

The government on Wednesday appointed Md Mostaqur Rahman as the new Governor of Bangladesh Bank for a four-year term, cancelling the remaining tenure of Dr Ahsan H Mansur with immediate effect. According to separate notifications issued by the Financial Institutions Division of the Ministry of Finance, the appointment has been made under Article 10(5) of the Bangladesh Bank Order, 1972 (President’s Order No. 127 of 1972). The notification said Mostaqur Rahman will serve as Governor of Bangladesh Bank for four years from the date of his joining, subject to relinquishing all employment relationships with other institutions and organisations. New govt to continue reforms in banking sector: Bangladesh Bank governor During his tenure, he will draw salary, allowances and other benefits from Bangladesh Bank in accordance with the terms of a contract to be signed with the government. Other conditions of his appointment will also be determined by the contract, the notification added. The order appointing Mostaqur Rahman took immediate effect. Mostaqur Rahman, a fellow member of the Institute of Cost and Management Accountants (FCMA),  holds a B.Com (Hons) and Masters Degree from the Department of  Accounting, University of Dhaka. Mostaqur Rahman is a member of Bangladesh Garments Manufacturers and Exporters Association (BGMEA), Real Estate and Housing Associations of Bangladesh (REHAB), Association of Travel Agents of Bangladesh (ATAB) and Dhaka Chamber and Commerce and Industries (DCCI). Bangladesh Bank buys $123 million from 8 banks to bolster reserves Mostaqur Rahman is an entrepreneur and businessman, and a senior financial governance specialist with over 30 years of leadership experience in corporate finance, export economics, institutional governance, and financial systems management, according to Bangladesh Bank. In a separate notification, the Financial Institutions Division said the remaining tenure of Dr Ahsan H Mansur as Governor of Bangladesh Bank has been cancelled. Dr Mansur had earlier been appointed as Governor through a notification issued on 13 August 2024. The cancellation order has also been issued in the public interest and came into force immediately, the notification said.

The government has initiated the process to remove Bangladesh Bank Governor Ahsan H Mansur and appoint a new chief of the central bank, according to officials at the Ministry of Finance. They said a proposal has already been sent to the Prime Minister’s Office seeking approval for the appointment of a new governor. According to the sources, a faculty member from a US university is being considered for the post. The proposal is currently awaiting the final clearance, and the officials indicated that the appointment could be finalised later in the day once the formalities are completed. Meanwhile, Financial Institutions Division Secretary Nazma Mobarek met the Finance Minister at his office at around 1:45pm, fuelling the speculation over the impending change in leadership at the central bank. New govt to continue reforms in banking sector: Bangladesh Bank governor When approached by reporters after the meeting, Nazma Mobarek declined to comment on the matter. “Please wait. I do not want to say anything right now. You will know if there is anything,” she said. There was no official statement from the Ministry of Finance or Bangladesh Bank regarding the development at the time of filing this report. Further details about the prospective appointee, including the individual’s identity and professional background, were not immediately available. Any change in the leadership of Bangladesh Bank is considered significant, given the central bank’s role in framing and implementing monetary policy, regulating banks and financial institutions, managing foreign exchange reserves and ensuring financial stability. While talking to an Adviser to the Prime Minister over telephone, he declined to comment on the matter, but he hinted that a change is imminent.

Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday pledged policy backing and faster disbursement of pending export incentives to help garment manufacturers navigate a mounting liquidity crisis ahead of Eid-ul-Fitr, as factories scramble to pay wages and bonuses to millions of workers. The assurance came at an emergency meeting held at the central bank headquarters with a delegation from the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), led by Senior Vice President Inamul Haq Khan and Vice President Md Shihabuddoja Chowdhury. BGMEA officials described a ‘deep crisis’ gripping the ready-made garment sector, which accounts for the bulk of Bangladesh’s export earnings. They said February’s production cycle has been curtailed to 19 effective working days from 28 due to public holidays for the national election and Language Day, disrupting shipment schedules at a critical time. The industry is also contending with weaker international demand, declining product prices and rising production costs, compounded by global geopolitical instability. With compressed production timelines, factory owners face what the association termed a “monumental challenge” in ensuring timely wage and Eid bonus payments. To prevent labour unrest and safeguard industrial stability, BGMEA submitted a set of proposals to the central bank. The association urged authorities to expedite the release of approximately Tk 5,700 crore in pending cash incentives for fiscal year 2025-26 that remain stalled in audit processes. It also called for preferential treatment for small and medium-sized factories when disbursing those funds to help ensure their survival. Besides, BGMEA sought a special wage-support loan facility equivalent to two months’ salaries, featuring a three-month grace period and a 12-month repayment schedule. New govt to continue reforms in banking sector: Bangladesh Bank governor The group further requested the reintroduction of Packing Credit at a 7 percent interest rate and an expansion of the Pre-shipment Credit Scheme from Tk 5,000 crore to Tk 10,000 crore, with an extension of the scheme’s tenure to 2030. Mansur acknowledged the urgency of the situation and said the central bank would take ‘positive steps’ to address the liquidity shortage, with particular focus on prioritising cash incentive releases for SME factories. Ensuring workers are paid on time to maintain stability in key industrial zones is a top priority for the central bank, he said. The intervention comes as Bangladesh’s export-reliant apparel sector faces intensifying pressure from global market volatility, underscoring the central bank’s balancing act between financial discipline and safeguarding employment in one of the country’s most critical industries.

Bangladesh Bank on Sunday extended the deadline for raw jute exporters to apply for loan rescheduling, aiming to support businesses facing liquidity challenges and help regularise defaulted loans. According to a circular issued by the Banking Regulation and Policy Department (BRPD) of the central bank, exporters now have until June 30, 2026, to submit their applications. Earlier, exporters were required to apply by December 31, 2025, by making a down payment or a one-time deposit of two percent of their existing loan as of December 31, 2024. Bangladesh Bank halts digital bank licensing process following protest Many could not meet the deadline due to complications in both global and domestic export markets. Under the revised directive, customers can apply to the concerned bank by depositing two percent of their defaulted (classified) loan balance. The circular, sent to the Chief Executives of all commercial banks, is effective immediately. Bangladesh Bank said the extension aims to safeguard the interests of exporters and ensure the continued dynamism of the country’s export trade.