B Mirror Report: Bangladesh Bank (BB) has appointed its Executive Director, Mohammad Ashraful Alam, as an observer at Islami Bank Bangladesh PLC in a move aimed at strengthening regulatory oversight and safeguarding depositor interests amid the bank’s ongoing operational and liquidity challenges.

According to a statement issued by the central bank on Wednesday, the appointment was made under the provisions of the Bank Company Act, 1991. The decision comes amid concerns over the bank’s governance and financial stability, as well as recent controversy surrounding the appointment of its new chairman.

The central bank said the appointment is intended to enhance transparency, accountability, and good governance within the bank while protecting the interests of depositors, stakeholders, and the wider public.

Under Section 49(1)(gh)(aa) of the Act, the observer is authorized to closely monitor the bank’s operations and governance framework. As part of his responsibilities, Alam will attend meetings of the bank’s Board of Directors and participate in other relevant activities.

He will also submit reports and observations on the bank’s operational activities to Bangladesh Bank, enabling the regulator to maintain closer supervision of the institution.

Bangladesh Bank described the move as part of its broader efforts to strengthen oversight of the banking sector and ensure financial discipline. The regulator believes that placing an observer at Islami Bank will help improve monitoring of management decisions and operational activities, thereby reinforcing depositor confidence and supporting the bank’s overall stability.

The appointment reflects the central bank’s continued commitment to maintaining sound governance and stability across the country’s banking industry.