Merger of five Islamic banks nearing completion: BB Governor

Merger of Five Islamic Banks in Final Phase: BB Governor

Bangladesh Bank Governor Ahsan H Mansur has confirmed that the merger of five private Islamic banks is in its final phase, assuring that no employees will lose their jobs as a result of the consolidation.

Speaking to journalists at the central bank’s boardroom on Sunday, Mansur clarified, “This merger has no link to the upcoming elections. It is part of a continuous reform initiative. We expect the next government to carry this forward, but we won’t wait for the polls—the merger will be completed within the next few months.”

The five banks involved in the merger are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank.

Mansur emphasised that employees need not be concerned about job security, although some branch restructuring may occur. “In cases where banks have a high concentration of urban branches, steps may be taken to relocate some of them to rural areas,” he noted.

On the issue of recovering laundered assets, the governor said the process is lengthy and must follow legal channels. “Assets cannot be recovered without a final court verdict. Specific data must be collected and due procedures followed,” he said.

He added, “We want our claims to be validated in court, and only then can recovery actions begin.”

Highlighting the Alternative Dispute Resolution (ADR) mechanism, Mansur noted that an out-of-court settlement path is also being considered. “In such cases, lawyers from both parties can negotiate a resolution. The central bank will act in accordance with the government's chosen approach, whether through the courts or ADR.”

He further stated that Bangladesh Bank is preparing to initiate legal proceedings in local courts for domestic recoveries and in appropriate foreign jurisdictions for overseas assets.