The government may consider compensating small investors affected by the proposed merger of five troubled Islamic banks, Bangladesh Bank said on Monday.
Arif Hossain Khan, Executive Director and Spokesperson of the central bank, acknowledged the concerns of retail investors and indicated that a humanitarian approach could be taken to address their losses.
“If small, affected investors approach the government with an application, there is an expectation that the government may address their situation according to its capacity,” Arif told reporters at the Central Bank headquarters in Motijheel.
He said the anxieties relate to investors holding shares in the affected banks through the stock market and suggested decision-makers involved in the consolidation might consider a solution beyond conventional accounting procedures.
The proposed merger aims to consolidate five struggling banks into a single Islamic banking entity.
Arif outlined the multi-stage regulatory process underway, clarifying that it formally began in March when the government submitted a letter of interest to Bangladesh Bank, which has since granted its consent.
He stressed that the establishment of the new entity will depend on strict adherence to legal procedures, including company formation and banking authorisation.