Five banks merged to form ‘Combined Islamic Bank’; final approval granted

ছবিঃ সংগৃহীত

News Desk:

Final approval has been granted for the formation of a new bank, Combined Islamic Bank, by merging five financially weak Islamic banks. With this approval, there is no remaining obstacle from the Ministry of Finance for the new bank to begin operations. As a result, the country’s largest state-owned Islamic bank has now officially started its journey.

On Sunday (30 November), the central bank’s board meeting gave the final approval for the Combined Islamic Bank.

The five banks being merged into the new entity are:

• First Security Islami Bank

• Social Islami Bank

• Union Bank

• Global Islami Bank

• EXIM Bank

These have been consolidated to form Combined Islamic Bank.

Earlier, on 9 November, a special online meeting of the central bank’s board—presided over by Governor Dr. Ahsan H. Mansur—granted a preliminary licence for the Shariah-based state-owned bank.

Even before that, on 5 November, Bangladesh Bank declared these five Shariah-based banks financially non-viable and appointed administrators to manage them.

Today (30 November), after receiving final approval from Bangladesh Bank, the new bank officially began its operations. The central bank has announced that details regarding depositor payments, profit rates (under Islamic banking), salary structures, and other schemes will be finalized soon.

In the merged bank, general depositors will be able to withdraw up to Tk 200,000. Small depositors will be given the highest priority in receiving their funds.

The new bank’s board of directors will consist of seven members, with Nazma Mobarek, Secretary of the Financial Institutions Division under the Ministry of Finance, serving as Chairperson. Other board members include various government secretaries and joint secretaries. An equal number of professional bankers, accountants, and lawyers will be appointed as independent directors. The managing director (MD) and top executives will be recruited through a search committee.

Speaking about the merger of the five financially weak Shariah-based banks, Bangladesh Bank Governor Dr. Ahsan H. Mansur stated that there was no alternative to consolidation. He expressed optimism that this process could yield positive outcomes for the economy if good governance is ensured.