Opinion

Coup in commercial banks; SIBL becomes the second victim
Ali Ahmed
07 Nov,2017

After the silent coup in country’s largest private Bank, Islami Bank Bangladesh Limited, now Social Islami Bank Ltd.'s (SIBL) top brass resignations have left a bitter taste in the banking sector.

It came to the media that in a recent Annual General Meeting, bank's top three members of senior management, including the chairman had submitted their resignations and those resignations were accepted by the central bank in only a few hours after submission. Though none of these three officials were present in that program. Basically it was enforced resignation just to establish the authority of the same company which had taken control of IBBL couple of months back.

It is reported that the central bank worked at record speed to accept the resignations and issue no-objection certificates (NOC) which is in contravention of a BB circular (issued on December 23, 2014) that states that if the chief executive officer of a banking institution wishes to relieve himself of his responsibilities, he or she must give the board at least a one-month notice, along with reasons for resignation, that are supposed to be verified by BB.

It would seem that rules do not apply to certain banks. Because it is found earlier that BB went one step further and approved the appointment of the new managing director and issued a NOC on the same day. It is a perverted level of efficiency with which the central bank is operating these days!

It seems that the central bank has given in to pressure from the new majority shareholder of the bank. If we are to take this as the new normal in our country, where banking rules and regulations are made to be broken, then there is little hope of ensuring good financial governance in the sector.