The Bangladesh Bank has returned control of Al-Arafah Islami Bank PLC (AIBL) to its former owners and shareholders, reconstituting the bank's board of directors with 14 members drawn from the institution's original sponsor-entrepreneurs.
The move represents a significant reversal in the central bank's oversight strategy for the lender.
Previously, the regulator had dissolved the existing board and installed representatives of the founding sponsors to manage the bank's affairs.
The latest action formalizes the return of operational control to the original equity holders, signaling a stabilization of the bank's governance structure.
This development follows a period of intense regulatory intervention.
Al-Arafah Islami Bank had entered into a refinance agreement with the Bangladesh Bank under the BB Cluster Financing Scheme, a program supervised by the central bank's SME and Special Programmes Department.