Political gain behind Islami Bank crisis: Finance Minister

Finance Minister Amir Khosru Mahmud Chowdhury told parliament that certain elements appear to be orchestrating a crisis at Islami Bank for political objectives. He suggested that the recent wave of deposit withdrawals is not driven by the appointment of a new chairman but by a deliberate effort to destabilize the bank.

"There is someone’s hand behind this, aiming to make the bank fail for political gain," Chowdhury stated during a parliamentary discussion. The concerns were raised following protests by some customers, which have led to a significant increase in withdrawals. Reports indicate the bank lost Tk 4,240 crore in deposits within seven days after protests began on June 1 against the appointment of Md Khurshid Alam as chairman by Bangladesh Bank.

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Those withdrawing money are not doing so because of the nomination of the new chairman; rather, it seems they want to put Islami Bank in danger. There is someone’s hand behind this, aiming to make the bank fail for political gain.

Chowdhury emphasized that Bangladesh Bank's investigation found no irregularities concerning the chairman's appointment. He argued that globally, customers do not withdraw funds solely based on a chairman's nomination, but rather on factors like interest rates, the security of their principal, and confidence in the institution.

The minister further alleged that this situation is part of a broader pattern to create political instability. He also defended the current Bangladesh Bank governor, stating he makes proper decisions within a correct framework, countering claims that the governor is "indebted." Chowdhury urged unity and warned that creating disorder would not yield significant political benefits.

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Customers care about whether they are receiving their interest properly, whether their money will be returned, and whether they have confidence in the institution. There is no precedent anywhere in the world of customers withdrawing money just because of a chairman’s nomination.