Moody’s has placed Social Islami Bank PLC (SIBP) under review for a potential downgrade, citing concerns over the bank’s liquidity, asset risk, and funding pressures. The bank’s long-term foreign and local currency deposit ratings, baseline credit assessment, and counterparty risk ratings are all under scrutiny due to these risks.
The review follows increased regulatory scrutiny of SIBP, one of six banks controlled by S Alam Group, amid liquidity challenges and mismanagement issues. Recent social unrest in Bangladesh and governance concerns within Islamic banks have further exacerbated these risks. Moody’s has already downgraded SIBP’s baseline credit assessment (BCA) and long-term counterparty risk assessment, signaling significant downside risks. The rating agency also indicated that an upgrade is unlikely unless the bank improves its solvency and addresses financial and governance risks.
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