BB Governor Md. Mostaqur Rahman spoke today at a post-budget press conference held at the Osmani Memorial Auditorium in the capital. Photo: BSSPhoto: BSS

DHAKA, June 12, 2026 (BSS) – Bangladesh Bank (BB) Governor Md. Mostaqur Rahman today assured the depositors of the Islami Bank and other troubled banks that there would be no difficulty for them as the central bank has adequate tools and liquidity support mechanisms to maintain stability in the banking sector.

“Our first priority has been to stabilise the banking sector and then recapitalise it,” he said, adding that restoring confidence in the financial system remains the central bank’s foremost objective.

Replying to a question at a post-budget press conference at the Osmani Memorial Auditorium in the capital, the governor said the interim government inherited a banking sector in which nearly one-third of deposits had effectively been siphoned off through irregularities and bad lending practices, while non-performing loans (NPLs) stood at around 35-36 percent.

Referring to recent speculation on social media regarding Islami Bank and Sammilito Islami Bank, the governor dismissed allegations of government interference and described them as ‘rumours’ aimed at creating instability.

He explained that after assuming office on February 26, the authorities found that the chairman of Sammilito Islami Bank had resigned and the selected managing director (MD) had declined to take the position. The central bank subsequently initiated a recruitment process, completed the necessary scrutiny, interviews and approvals, and appointed a new MD by the end of May.

He said the board restructuring process also required time, adding that the newly appointed chairman recently held the first board meeting and the bank’s operations were continuing normally.

Regarding Islami Bank, the governor said the government-appointed board remained largely unchanged, except for the replacement of one member following allegations of irregularities. He stressed that neither the government nor the central bank had interfered in lending decisions, promotions or transfers within the bank.

The governor acknowledged that some deposit withdrawals had increased amid uncertainty but assured customers that they would continue to have unrestricted access to their deposits.

“There is no reason for depositors to worry. They can withdraw their money freely at any time,” he said.

He noted that Islami Bank’s Advance-to-Deposit Ratio (ADR) had risen from around 93 percent in July 2024 to nearly 98 percent by March this year, exceeding the regulatory ceiling of 92 percent for Islamic banks. The central bank has already instructed the bank to reduce the ratio to strengthen financial stability, he added. 

Md. Mostaqur Rahman also said Bangladesh Bank would provide emergency liquidity support whenever necessary and expected both the bank’s management and board to take appropriate corrective measures.

The governor further revealed that resolution efforts for several troubled non-bank financial institutions (NBFIs) were nearing completion. Depositors who have been unable to recover funds for years would begin receiving payments as the resolution process moves forward in the coming weeks, he said. 

On the recovery of stolen assets, he said a dedicated Asset Recovery Task Force and Joint Investigation Team were working with multiple international agencies to trace and recover funds laundered abroad.

Although global success rates for asset recovery are generally low and the process can take years, he said Bangladesh remained committed to pursuing those responsible.

“We will continue to chase those who looted public money wherever they are,” he added.

The governor also announced that from July 1, a unified “Bangla QR” system would become mandatory nationwide, enabling interoperable digital transactions across all payment platforms and helping accelerate the country’s transition toward a cashless economy.

Speaking on the occasion, Finance Secretary Dr. Md. Khairuzzaman Mozumder said the budget deficit for FY2026-27 has been estimated at Tk 2.43 lakh crore. He noted that the government aims to gradually reduce dependence on bank borrowing while increasing public investment to stimulate economic activity and revenue generation.

He also highlighted strong investor interest in alternative financing instruments.

Meanwhile, the National Board of Revenue (NBR) Chairman Md. Abdur Rahman Khan clarified that the proposed budget contains no provision for legalising undisclosed income, commonly referred to as “black money.”

“There is no opportunity in the budget to whiten black money,” the NBR chairman said, adding that taxpayers with legally earned and previously taxed income would not face any additional burden under the proposed measures.