BB dissolves boards of 5 shariah banks ahead of major merger

Bangladesh Bank (BB) has dissolved the boards of five financially weak Shariah-based banks as part of a significant move to merge them into a single large Islamic bank.

The central bank announced the decision via a notice sent to the managing directors of the concerned institutions. 

The regulator further stated that it will directly oversee the entire merger process.

The five banks whose boards were dissolved are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank.

During the Awami League government's tenure, four of these banks were reportedly under the ownership of the S Alam Group, while one was controlled by businessman Nazrul Islam Mazumder. Over the years, the banks became financially distressed after thousands of crores of taka were allegedly siphoned off through irregularities and multiple loans.