The government on Tuesday  formed an eight-member working committee to implement the merger of five Sharia-based banks. 

As per a decision of a meeting held on Monday at the Financial Institutions Division of the Ministry of Finance, an office order was issued for the formation of the committee.

The committee's mandate is to create an action plan for the implementation of the merger process for the respective five banks: First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank.

The committee is headed by Bangladesh Bank Deputy Governor Md. Kabir Ahmmod as the convener. The other members include Joint Secretary of the Finance Division of the Ministry of Finance Mohammad Rashedul Amin, Deputy Secretary Farid Ahmed, Joint Secretary of the Financial Institutions Division Sheikh Farid and Mohammad Saidul Islam, Director of the Bank Resolution Division of Bangladesh Bank Mohammad Zahir Hossain, and Additional Directors from the same division Kazi Arif-uz-Zaman and Mohammad Nazim Uddin.

The office order states that the committee members will receive an allowance for attending meetings in accordance with the rules.

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Bangladesh Bank has taken the initiative to merge these five Islamic banks, which faced problems due to widespread irregularities and corruption during the ousted Awami League government's tenure, into a single Islamic bank. 

The total capital for the new bank has been set at Tk35,000 crore. Out of this, the government will initially provide Tk 20,200 crore, with the rest coming from loans.