Dhaka: Executive Director and Spokesperson of Bangladesh Bank (BB), Arif Hossain Khan, announced today that the government may consider offering compensation to general investors affected by the merger of five troubled Islamic banks.
According to Bangladesh Sangbad Sangstha, Arif Hossain Khan mentioned that small, affected investors could potentially receive government consideration if they submit an application outlining their situation. During his meeting with reporters at the BB headquarters, Khan acknowledged the concerns of small investors involved in the share market with these banks.
He suggested that decision-makers might address these issues from a humanitarian perspective, potentially setting aside conventional accounting procedures. Khan also detailed the ongoing, complex regulatory process aimed at merging the five troubled banks into a single Islamic entity.
The process, initiated by a government letter of interest submitted to Bangladesh Bank in March, seeks to consolidate the banks into one. Bangladesh Bank has consented to the proposal, but Khan emphasized that the new entity's formal commencement depends on adhering to strict legal procedures.
The government must first apply to the Registrar of Joint Stock Companies and Firms (RJSC) for formal company formation, outlining board formation and shareholding structure. Approval from the RJSC will then allow the company to approach Bangladesh Bank for recognition as a bank company under the Bank Company Act.
Khan concluded by stating that the new bank's formal operations can only begin from a principal office after Bangladesh Bank receives the necessary application and grants final authorization.