Bangladesh Bank (BB) Governor Md Mostaqur Rahman has said there is no illegal government interference in Islami Bank and that the central bank has not engaged in any irregular intervention in its operations, dismissing allegations circulating on social media.

Speaking at a post-budget press conference at Osmani Memorial Auditorium in the capital on Friday, the governor said neither Bangladesh Bank nor the government had issued instructions regarding loan approvals, staff promotions, or transfers within the bank.

“We have not asked the bank to approve any loan, nor have we instructed it to transfer or promote anyone. Yet social media is being used to spread claims of illegal interference,” he said.

He noted that when the interim government assumed office, Islami Bank already had a board in place. One board member was later replaced on March 16 following allegations of irregularities. Beyond this, Bangladesh Bank has not intervened in the bank’s management, he added.

Referring to the recent resignation of the bank’s chairman, Mostaqur said it came unexpectedly just before Eid, prompting a swift appointment to ensure smooth operations of what he described as a systemically important bank.

He alleged that certain groups have since attempted to create instability around the institution.

Seeking to reassure customers, the governor said depositors have no reason for concern and can withdraw funds whenever needed. He added that Bangladesh Bank will provide emergency liquidity support if required.

According to him, Islami Bank’s Advance-Deposit Ratio (ADR) stood at around 93% in July 2024 but has since risen to nearly 98%. While the central bank has advised reducing the ratio, it remains above the preferred level. However, he expressed confidence that the bank’s board is working to address the issue.

Mostaqur also said the banking sector is still dealing with long-standing challenges, including large-scale fund siphoning in previous years, and that restoring stability will take time and cooperation from all stakeholders.

“I do not think Islami Bank will face any major problems going forward,” he said. “Bangladesh Bank will provide whatever support is necessary to protect depositors’ interests.”