The government has dissolved the board of Islami Bank, Bangladesh’s largest private bank, following escalating political tensions surrounding its ownership and management. The move comes after prolonged disputes between the ruling party and the main opposition over control of the institution. The Association of Bankers Bangladesh (ABB) met with the central bank governor to express concern, and the governor acknowledged the issue had become politicized. The author argues that such politicization undermines governance and could unsettle international confidence.

The article traces the bank’s troubled history, including alleged misuse of state agencies under the previous administration to transfer ownership to businessman S. Alam, accused of large-scale financial misappropriation. The interim government led by Dr. Yunus had restructured the bank, restoring stability, but renewed turmoil has emerged under the current elected government. The author warns that political interference in banking could jeopardize economic recovery and foreign loan negotiations.

The commentary concludes that the government must restore depositor confidence by recovering misappropriated funds, appointing competent management, and ensuring liquidity support. Failure to depoliticize the financial sector could threaten remittance inflows and overall economic stability.