Bangladesh Bank Governor Dr Ahsan H. Mansur has said the central bank had no choice but to merge the five financially weakened Shariah-based banks, describing the move as the only viable path to safeguard the banking sector.
Speaking at the Bangladesh Islamic Finance Summit held at a hotel in Banani on Sunday, the governor said the merger decision was unavoidable given the institutions’ prolonged financial irregularities and operational weaknesses.
“There was no alternative to merging the banks. If good governance can be ensured, this initiative will ultimately benefit the country’s economy,” he said.
Dr Mansur stressed that transparency is essential for strengthening and revitalising the banking sector. “Investment, deposits, and operations cannot move forward without the active participation of investors, depositors and officials,” he added.
On 5 November, Bangladesh Bank declared the five Shariah-based banks—Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank—“non-functional” due to severe irregularities and vulnerabilities, subsequently appointing administrators to run them.
Later, on 9 November, a special online board meeting chaired by the governor approved a preliminary licence for a new state-owned Shariah-based bank, Sammilito Islami Bank, which will operate through the merger of the five institutions.
Nazma Mobarek, Secretary of the Financial Institutions Division under the Ministry of Finance, has been appointed chairman of the new bank.