The Bangladesh Bank had appointed an observer to Islami Bank in December 2010, being propelled by a fear of loan irregularities.
Since then, a director level official (then general manager) of the central bank used to attend different meetings of the Shariah-based bank.
A Chattogram-based industrial group took over the bank in 2017 with the observer keeping a cautious eye on the process. Later, the central bank withdrew the observer from the largest private bank in March 2020.
The then governor of Bangladesh Bank, Fazle Kabir, was not in favour of keeping an observer in the Islami Bank, though six other scheduled banks still have observers in their boards.
Besides, the regulator has started appointing coordinators to some more banks.
Against such a backdrop, a question arose as to which consideration had prompted the central bank to bring the observer back from the Islami Bank. Some even pointed the finger at the regulator, saying that the move was taken to facilitate the irregularities.
The method, which was used to lift money from the Islami Bank in the name of shell companies, is quite similar to the notorious financial scam of PK Halder.
