Bangladesh Bank Governor, Mohammad Mustafaur Rahman, has assured Islami Bank depositors that there will be no issues withdrawing money. He stated that the bank has tools to ensure depositors can withdraw funds anytime. The assurance came during a post-budget press conference held at Osmani Smriti Milanayoton in the capital on Friday.
The Governor addressed questions regarding the banking sector's confidence crisis, liquidity issues, and concerns specifically about Islami Bank. He mentioned that emergency liquidity support would be provided if necessary. He also discussed the recent changes in Islami Bank's board of directors, including the resignation of the chairman before Eid and the immediate appointment of a new member to maintain the required board size.
Expressing concern over Islami Bank's financial condition, the Governor noted that the bank's loan-to-deposit ratio (LDR) increased from 93% in July 2024 to 97% currently, exceeding the set limit of 92%. He instructed the management to reduce this ratio. Following controversies and protests over the appointment of Islami Bank's chairman, Bangladesh Bank appointed an observer, Mohammad Ashraful Alam, to monitor the bank's activities.
