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The central bank has imposed lending restrictions on six Islamic banks associated with S Alam Group amid allegations of misconduct. The affected banks—Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank—have been prohibited from issuing new loans or rescheduling existing ones until further notice. However, these banks are allowed to continue providing agriculture loans, SME loans against deposits, and incentive packages up to Tk 5 crore. This move signals heightened regulatory scrutiny over the banks’ operations and aims to address concerns over financial management and governance.
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