Dr. Ahsan H. Mansur, the Governor of Bangladesh Bank, announced that five private sector Islamic banks will be merged very soon. However, he made it clear that no employee would lose their job as a result.
He provided this assurance at a press conference held in the Bangladesh Bank board room on Sunday (June 15).
Dr. Ahsan H. Mansur stated that the five Islamic banks would be merged within the next few months, without waiting until the election. He emphasized that this merger has no connection with the upcoming election, as it's an ongoing process. He expressed hope that the next government would also continue this initiative.
Reassuring bank employees, he added that there's no cause for concern. If needed, some branch structures might be altered. Specifically, some branches of banks that have a high concentration in urban areas might be considered for relocation to rural areas.
Regarding the recovery of laundered assets, the Governor mentioned that this is a long-term and gradual process. Such funds cannot be recovered without a final court ruling. For this, he stated, "We must collect specific information and data and follow due legal procedures."
Earlier, Ahsan H. Mansur had said that six banks would be brought under government ownership by July, and the necessary capital would be provided. However, these arrangements would be temporary. The central bank has already provided liquidity support to these banks. Six banks will be merged by July due to their weakening conditions caused by various irregularities and loan fraud.
He further added that the banks would remain under government control temporarily. Afterwards, "we will hand over the shares of these banks to the public. We will hand them over to international strategic investors. However, this will be done after the bank's reorganization."
The Governor expressed hope that the banks' capital adequacy ratio would be increased from 12.5% to 15% within four years.
Among the six banks are First Security Islami Bank, Social Islami Bank, Union Bank, Global Bank, and EXIM Bank. Five of these banks were under the control of S. Alam. The remaining bank was under the control of Nazrul Islam Majumder.
