Dhaka: The board of Bangladesh Bank (BB) has approved a plan to merge five financially troubled Islamic banks and appoint administrators to oversee the process. The approval came at a special board meeting today, chaired by BB Governor Dr Ahsan H Mansur. The banks involved in the merger are First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, and EXIM Bank.
According to Bangladesh Sangbad Sangstha, following the meeting, BB Executive Director and spokesperson Arif Hossain Khan said the merger process is now officially underway and is expected to take at least two years to complete. He noted that under the Bank Resolution Ordinance, Bangladesh Bank will appoint temporary administrative teams in each of the five banks. However, he clarified that this does not mean an immediate change in leadership.
Khan further explained that there should not be assumptions of managing directors being removed upon the deployment of Bangladesh Bank's teams. He added that the existing management structures will continue to operate during the transition.