The Bangladesh Bank on Tuesday dissolved the boards of five private banks and appointed administrators to take over their management, as part of an extensive restructuring plan to merge the financially distressed institutions into a single entity.
The affected banks are First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank. Administrators appointed by the central bank assumed responsibility this morning after the institutions were formally brought under the Bank Resolution Ordinance.
Announcing the decision at a press conference at the central bank headquarters, Bangladesh Bank Governor Ahsan H Mansur said the move was necessary to protect depositors, restore financial discipline, and stabilize the country’s banking sector.
“These banks had reached a stage where they could no longer function under their existing managements. Their operations will now be guided by administrators to ensure transparency and accountability,” he said.
The governor explained that the merger would create a new institution called “Combined Islami Bank”, which will have a total capital base of Tk 35,000 crore—including Tk 20,000 crore from the government and Tk 15,000 crore in shares to be distributed among depositors.
“Depositors will not lose their money. Their funds will be protected through the issuance of shares and, where necessary, through the Deposit Protection Fund,” Mansur assured.