B Mirror Report: Managing directors (MDs) and chief executive officers (CEOs) of commercial banks have expressed concern that the ongoing situation surrounding Islami Bank Bangladesh PLC could have wider repercussions for the country’s banking sector, potentially undermining public confidence in the financial system.

The concerns were raised at a bankers’ meeting held at Bangladesh Bank on Wednesday, chaired by Governor Md. Mostakur Rahman and attended by the MDs and CEOs of all scheduled banks.

Speaking to reporters after the meeting, Association of Bankers, Bangladesh (ABB) Chairman and City Bank Managing Director and CEO Masrur Arefin said the developments involving Islami Bank have become a matter of concern for the entire banking industry.

He said bankers are deeply worried that instability surrounding the country’s largest bank could extend beyond a single institution and create a broader confidence crisis across the banking sector.

According to Arefin, the Bangladesh Bank governor observed that the issue is no longer confined to the banking industry and has taken on political dimensions. Efforts are therefore being made to normalize the situation through dialogue and understanding among the relevant stakeholders.

Arefin warned that the politicization of the issue could increase uncertainty among depositors and negatively affect the banking sector as a whole.

During the meeting, Governor Mostakur Rahman also emphasized the importance of strengthening governance in the banking industry. He urged bank chief executives to perform their duties professionally and impartially, without yielding to political pressure.

The governor further instructed banks to ensure the submission of accurate, updated, and reliable information to the Credit Information Bureau (CIB).

The meeting also discussed a proposed Tk 60,000 crore loan support package aimed at assisting small and medium-sized enterprises (SMEs). Arefin said the fund is planned to be disbursed under Bangladesh Bank’s refinancing facilities.

Concerns were also raised over errors and delays in reporting export and import data. The governor noted that significant discrepancies in the declared values of imported goods are affecting national accounts and economic statistics.

Arefin said greater emphasis has been placed on using international pricing platforms and online sources to verify global market prices. Such measures are expected to help reduce import overvaluation and prevent unnecessary losses of foreign exchange.

The meeting featured extensive discussions on banking sector stability, corporate governance, transparency in information reporting, and financing support for the SME sector.