The instability that has emerged at Islami Bank Bangladesh PLC is unacceptable by any standard. Following the appointment of a new chairman, a series of controversies and ongoing protests have reportedly prompted customers to withdraw more than Tk 50 billion from the bank over the past few days. More worrying is the fact that the issue has now evolved into a political tug-of-war between the ruling party and the opposition.

The Association of Bankers, Bangladesh (ABB), the body representing chief executives of banks, expressed concern over the matter during a bankers’ meeting with the governor on Wednesday.

In response to the situation, Bangladesh Bank has appointed an observer at Islami Bank. We believe that Bangladesh Bank must now urgently pursue a reasonable and broadly acceptable solution to the crisis, rising above political considerations.