Islami Bank board must uphold Islamic values: Customers at a gathering

Islami Bank Bangladesh should be operated by those who uphold Islamic values as it was initially founded with the noble intention of serving Islam, said a group of customers of the bank in Dhaka yesterday.

"To maintain an Islamic bank, it must adhere to Islamic principles. Only then will the Islamic bank operate effectively," economist Abu Ahmed said at a "customers' gathering" held at a hotel.

Speaking as chief guest, Ahmed said, "Those who established the bank aimed to serve Islam. The foreign investors who came in were also motivated by the desire to serve Islam. However, when they saw that the bank was unjustly taken over and that Islamic principles were no longer being followed, they too turned away.

"I would request the governor to restructure the board of Islami Bank with those who were on the board before 2017 or with qualified individuals who embody Islamic principles."

Those who established Islami Bank used to pay employees lower salaries and kept expenses minimal, said the economist. In this way, they accumulated significant wealth to build a strong foundation for an Islamic economy, he said. 

"This very success caused the downfall of Islami Bank. When the plundering group saw that a considerable amount of wealth had been amassed, they began scheming to take control. One by one, all the Islamic banks were taken over. At one time, Islami Bank used to lend to other banks. Now, the bank itself has to borrow to continue operating," he said.

Ahmed further said, "The Bangladesh Bank has tried to keep the bank afloat by printing money. This cannot continue for long. Therefore, customer confidence must be restored. If customers see that their deposits are secure, they will start putting their money back into Islami Bank. They won't be concerned with how much profit is being offered."

At the customers' gathering, organised for institutional clients, business leaders associated with Islami Bank delivered speeches. Representatives from various business organisations, including the FBCCI, the BGMEA, and the BKMEA, were present on the occasion.

The speakers emphasised that to restore Islami Bank to its former state, the previous management must be reinstated. They pointed out that since 2016, Islami Bank has seen no success but only a history of looting.

They further said Islami Bank is not safe in the hands of non-Islamic individuals, and this has already been proved. Therefore, the bank must be managed by people with strong faith and beliefs, they said. 

The current appointee is skilled in conventional (interest-based) banking, but Islamic banking cannot be run by someone like him, said the speakers. He has benefited from the previous government and has served as the managing director of three interest-based state-owned banks, they said, accusing him of being a paid agent of S Alam.

Criticising the newly-formed board, the speakers said that the board created by the Bangladesh Bank will not bring about any improvement. 

At the end of the meeting, a memorandum was submitted to the governor, demanding the reconstitution of the board. It was also stated that Islami Bank is only safe in the hands of those who originally established the bank.

Placing a demand for the enactment of Islamic banking laws, they said such a large Islamic banking system cannot be operated based solely on guidelines.