BB meeting: Five Shariah-based banks to be merged into one bank

Dhaka, Bangladesh || Sunday, 3 May 2026 || 19 Boishakh 1433

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BB meeting: Five Shariah-based banks to be merged into one bank

Published : Thursday, 5 June, 2025 at 12:15 PM, Count : 379

BB meeting: Five Shariah-based banks to be merged into one bank

Five Shariah-based banks that are struggling financially are set to be merged into a single large Islamic bank. The government will provide the initial capital for the new bank, which will focus primarily on financing small and medium enterprises (SMEs).

Bangladesh Bank will grant the license for this new institution, and the assets and deposits of the five banks will be transferred under it. The process is scheduled to begin right after the Eid holidays.

On Wednesday, the central bank called in the chairmen and managing directors (MDs) of the five banks to inform them of the decision, according to officials from both the central bank and the five Shariah-based banks.

They said customers will not face any disruption during the transition, as all depositors will automatically become clients of the new bank. Except for top-level executives, other bankers will remain in service until the merger process is complete. The merger is expected to take at least three years, and the banks have been instructed to remain prepared for this.The five banks are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank. Earlier, Bangladesh Bank governor Ahsan H Mansur announced at a banking conference on 9 April that two large banks will be developed with the Shariah-based banks.

Among the five, EXIM Bank is owned by Nazrul Islam Mazumder, a businessman close to the Awami League, while the remaining four are owned by S Alam Group, a business conglomerate close to ousted prime minister Sheikh Hasina. During the previous government’s tenure, a staggering sum of money was withdrawn from these banks under various names, weakening their financial standing.

After the fall of the Awami League government following a student-led uprising on 5 August last year, new boards were introduced in these five banks. Independent directors now manage four of them, excluding EXIM Bank.

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