Bangladesh Bank (BB) Governor Dr Ahsan H Mansur has assured that regular services at the five Shariah-based banks, the Boards of Directors of which have been dissolved, will continue without interruption.
He said all essential operations, including payments, remittances, and Letters of Credit (LCs), will function as usual.
The governor came up with the assurance at a press conference held at the central bank on Wednesday (Nov 5).
Dr Mansur said although the boards have been dissolved, the day-to-day operations of the five institutions will proceed normally.
“Business continuity is being maintained. Payments, remittances, LCs—everything will run. Our objective is to keep commercial activities uninterrupted while gradually merging the assets and IT systems of the five banks,” he added.
The five banks declared ‘non-viable’ and placed under the merger plan are First Security Islami Bank PLC, Global Islami Bank PLC, Union Bank PLC, EXIM Bank PLC and Social Islami Bank PLC (SIBL).
Following the dissolution of their boards, Bangladesh Bank appointed five temporary administrators—senior officials from the central bank—to oversee the immediate operations of the affected banks.
The appointed administrators are:
MD Slah Uddin, Executive Director, BB – Administrator for Social Islami Bank
Mohammad Abul Hashem, Director, BB – Administrator for Union Bank
Mohammad Badiuzzaman Dider, Executive Director, BB – Administrator for First Security Islami Bank
MD Muksuduzzaman, Director, BB – Administrator for Global Islami Bank
MD Sawkatul Alam, Executive Director, BB – Administrator for EXIM Bank
Besides, four more officials from the central bank have been assigned to assist the administrators in routine operations and asset consolidation.
Dr Mansur said the process of structural and technological integration has already begun to protect the interests of around 75 lakh depositors and prevent liquidation. The five institutions together operate about 750 branches.
The five merging banks will form the country’s largest Islamic bank, tentatively named Shommilito Islami Bank (Combined Islami Bank).
The consolidated bank will have a paid-up capital of Tk 35,000 crore, surpassing that of any existing bank in Bangladesh.
The governor said that although it will be a government-owned entity, the new bank will operate like a private institution with a professional Managing Director, a market-based pay structure, and a dedicated Shariah Board. “We believe Islamic banking is the future of Bangladesh,” he noted.
On the issue of shareholding, Dr Mansur said the shareholders’ equity value is currently ‘negative’, and therefore, the shares will be valued at zero. He also made it clear that no compensation will be provided to shareholders.
Depositors with up to Tk 2 lakh will be allowed to withdraw their full amount, while those with higher deposits will be able to make phased withdrawals. Details will be outlined in a forthcoming Gazette notification.
He urged the public not to panic and withdraw only what is necessary.
When asked whether the merger process might be affected by a possible change in government, the governor said, “This decision has been taken in the interest of the country. Even if the government changes, the decision will remain unchanged for the sake of the people’s interest.”