Return Islamic banks to founders: Speakers

Staff Reporter :

Speakers at a recent discussion have called on the government to return Shariah-based Islamic banks to their original founders, emphasising the need for these institutions to be managed in accordance with Islamic principles.

The event, described as a ‘customer rally,’ was organised to advocate for the protection of Shariah-based Islamic banking and was held at a hotel in Motijheel, Dhaka, on Saturday.

Prominent economist Professor Abu Ahmed, who spoke as the chief guest, highlighted the importance of returning the banks to their founders.

“Islamic banks, based on Shariah, must be operated by the people who founded them to serve financial inclusion for the ordinary people of the country,” he stated.

Professor Ahmed criticised the current management of these banks, claiming that they were taken over “at gunpoint” by individuals with the intent to loot money.

He stressed that the founders of these banks did not establish them with profit in mind but rather to provide a Shariah-compliant financial service.

However, the greed of certain individuals has, according to him, led to the banks’ assets becoming a burden.

He specifically accused the S Alam Group of looting more than Tk 75,000 crore from Islami Bank, stating, “Those of us who have done business honestly are now unable to open LCs.

The business has been seriously affected by this crisis.” He further suggested that struggling businesses should be offered a 10-year rescheduling of their loans.

Former Chairman of the National Board of Revenue (NBR), Mohammad Abdul Mazid, echoed these concerns, stating that the forcible occupation of Islami Bank by S Alam Group has severely damaged the SME sector and the broader economy.

He called for the perpetrators to be brought to justice and for legal actions to be taken against those responsible for the bank’s decline.

Abdul Haque, former director of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), urged for a thorough investigation to reveal how the Islamic banks were mismanaged by what he described as “plunderers.”

He criticised past attempts to address the issue, indicating that earlier warnings were not heeded.