Dhaka, June 14 -- The entire Board of Directors of embroiled Islami Bank Bangladesh PLC, led by its new chairman, stands dissolved in a latest regulatory move aimed at safeguarding interests of the bank, its depositors and the public.

According to a statement issued Sunday, the central bank exercised its authority under Sections 45 and 47(3) of the Bank Company Act 1991 to cancel the appointments of all directors of the country's largest Shariah-based bank.

"The decision has been taken in the interest of the bank, depositors and overall public interest," says the Bangladesh Bank (BB) statement.

Under the Act, Mohammad Zahir Hossain, an Executive Director of the central bank, has been entrusted with exercising "all powers and carrying o...