Corporate clients of Islami Bank Bangladesh have alleged that major business decisions are slowing because the bank lacks a full board, chairman and regular managing director. After its board was dissolved, Bangladesh Bank Executive Director Mohammad Zahir Hossain was assigned responsibility for the bank’s board. The August 4 report said delays have affected import letters of credit, loan renewals and working-capital approvals for businesses.

The bank still handles salary payments for workers at several hundred garment factories and other industrial companies. One industrial entrepreneur said four of his garment factories, employing more than 4,000 workers, use Islami Bank for salary payments and letters of credit but have recently not received needed support. Corporate clients said approvals for large loans, letters of credit and important financial decisions have become more complicated without full leadership.

Hossain rejected the complaints, saying necessary and important decisions are being taken and reasonable applications are approved. Bank officials said routine banking operations continue under the one-member board, although central-bank liquidity support cannot be used for new investment or working capital. Bangladesh Bank said work to form a new board is at a final stage, pending screening and selection of qualified, acceptable individuals.