Janata Bank has requested urgent intervention from the Bangladeshi government to prevent the closure of its four branches in the United Arab Emirates (UAE), following regulatory actions taken by the Central Bank of the UAE (CBUAE). The bank’s chairman, Md Fazlur Rahman, appealed to the Financial Institutions Division under the Ministry of Finance to convene a meeting with key stakeholders, including representatives from the Finance Division, Bangladesh Bank, the Ministry of Foreign Affairs, and the Bangladesh Embassy in the UAE, to address the unfolding situation.
The CBUAE appointed audit and consultancy firm Crowe UAE as administrator to oversee the winding-down process of Janata Bank’s UAE operations, effective from early October. This move followed the regulator’s determination that the bank had not met the elevated minimum paid-up capital requirements set in 2021. At that time, the CBUAE raised the capital threshold for foreign banks from 40 million dirhams to 400 million dirhams. Janata Bank’s UAE unit reported a paid-up capital of 100 million dirhams, supplemented by 83 million dirhams in retained earnings, which still left a significant shortfall relative to the new requirements.
The capital shortfall initially led the CBUAE to restrict withdrawals and transfers from Janata Bank’s accounts starting July 8, 2026. A week later, the bank was ordered to gradually cease its operations in the UAE within a maximum timeframe of three years and to appoint an administrator to manage this process. Janata Bank has since sought to address the issue, remitting approximately 300 million dirhams (about $81.7 million) to its nostro account in New York in an attempt to bolster its capital position. However, the CBUAE rejected this move as non-compliant, citing the bank’s failure to comply with regulatory timetables, including the delayed appointment of an administrator.
The Bangladeshi government, as the sole shareholder of Janata Bank, has committed to injecting up to 2 billion dirhams to support the bank's capital adequacy. Finance Division Secretary Md Khairuzzaman Mozumder communicated this commitment to the CBUAE governor in late September. Despite this pledge, the closure process remains underway.
Janata Bank serves around 70,000 active depositors in the UAE, mostly Bangladeshi expatriates, and manages approximately 3,800 credit accounts. The bank has emphasized that maintaining its UAE operations is critical not only to protect its customers and financial interests but also to sustain remittance flows and support economic ties between Bangladesh and the UAE. A prolonged disruption of banking services could impact remittance channels vital for migrant workers in the region, potentially affecting broader economic relations.
Efforts to resolve the crisis focus on diplomatic engagement, regulatory compliance, capital adequacy, and ensuring foreign currency liquidity. The bank is seeking a solution that addresses the concerns of UAE regulators while allowing it to continue serving its customer base in the UAE. Meanwhile, the CBUAE remains firm that the closure is mandated due to unresolved capital deficiencies and regulatory breaches.