Ama Muhith

IBBL row: Muhith seeks explanation from BB about IDB allegations

Finance Minister Ama Muhith has sought explanation from Bangladesh Bank about allegations of foreign investors of Islami Bank Bangladesh Limited (IBBL). The Islamic Development Bank (IDB) alleged that the IBBL board made the recent high-level changes in the absence and without consent of foreign shareholders. Two foreign investors including IDB hold 52% shares of the IBBL. At the board meeting January 5, former bureaucrat Arastoo Khan was elected chairman of IBBL. Changes were also brought to the posts of managing director and heads of various committees of the bank and also to chief of the Islami Bank Foundation. At present, of the 16 board of directors, seven are independent directors, seven from little known companies and two are foreign sponsors’ representatives.

IDB dismayed by 'abrupt' changes at Islami Bank

The Islamic Development Bank (IDB) expressed dismay at the recent changes that took place at Islami Bank Bangladesh (IBBL). In a letter to Finance Minister Ama Muhith, IDB said the foreign shareholders feel that the governance of the bank has been taken away from them, although they own more than 52% of the shares, while IDB has a 7.5%. The IDB also criticised the way a board meeting at IBBL is convened. Furthermore, the IDB voiced its concern about the recent changes, about appointing the new managing director in an abrupt manner, not following the rigorous recruitment process. As a response to IDB's letter, Islami Bank said in a statement that all banking rules have been followed properly.

Muhith urges IDB to come out of traditional financing

Finance Minister of Bangladesh AMA Muhith has urged governors of the Islamic Development Bank (IDB) to push for a community-based partnership and come out of traditional financing models for a prosperous Islamic world. Muhith suggested leaders of the Islamic countries should work together to pull up the OIC (Organisation of Islamic Cooperation) region towards achieving healthy human development and securing strong, sustainable economic growth. He was speaking to OIC leaders at the 40th annual meeting of the Islamic Development Bank Group at Maputo, Mozambique. Currently, IDB's support for low-income members is stymied by not just a lack of adequate development funds but by its relatively higher cost as well, Muhith said.

Muhith urges banks to spend more on education from CSR funds

Finance Minister AMA Muhith on Thursday urged Bangladesh’s banking sector to spend more from their corporate social responsibility (CSR) funds on the education sector. Appreciating Shahjalal Islami Bank (SIBL) and Dutch-Bangla Bank for their CSR contributions to the education sector, the Finance Minister said these two banks believe that education has been the most contributory element to human development. He was speaking at a function arranged marking the distribution of scholarships by the SIBL at the city’s Officers Club. At the function, some 500 students from across the country received scholarships from the SIBL. Muhith also appreciated the Bangladesh Bank governor for his campaign to encourage banks to spend more on their CSR activities.

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