Dhaka, Bangladesh (BBN) - Some troubled Islami banks will be merged into one under state ownership to protect depositors' interests, Bangladesh Bank Governor Ahsan H Mansur said.
“The central bank’s first priority is securing depositors’ assets or money. Whether banks survive or not is a secondary matter,” said the central bank chief said while addressing a press conference marking the publication of the annual report of the Bangladesh Financial Intelligence Unit (BFIU) on Tuesday.
These banks will be brought under the bank resolution ordinance and initially nationalised for a certain period, Dr. Mansur explained.
He also assured depositors their funds would remain safe during the transition, as the government would take over the merged banks.
The central bank chief has announced an action plan to merge six financially weakened banks in the near future, citing widespread irregularities and loan fraud. While the names of the banks were not disclosed, the move is part of a broader effort to restore stability and discipline in the banking sector.
Under the plan, the central bank will initiate the process of nationalising six ailing commercial banks between July and August, in accordance with the provisions of the recently introduced Bank Resolution Ordinance.
According to media reports, the banks are First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, Exim Bank, and National Bank.
However, National Bank is not a shariah-based Islami bank.
BBN/SSR/AD