Staff Reporter :
The government has constituted an eight-member working committee to oversee the planned merger of five Shariah-based banks.
Following a meeting held on Monday at the Financial Institutions Division of the Ministry of Finance, an official order was issued on Tuesday confirming the formation of the committee.
The committee has been tasked with preparing an action plan to implement the merger of First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank.
The body will be led by Bangladesh Bank Deputy Governor Md Kabir Ahmmod, who will serve as convener.
Other members include Finance Division Joint Secretary Mohammad Rashedul Amin, Deputy Secretary Farid Ahmed, Financial Institutions Division Joint Secretary Sheikh Farid, Financial Institutions Division Joint Secretary Mohammad Saidul Islam, Bangladesh Bank Resolution Division Director Mohammad Zahir Hossain, and two additional directors from the same division-Kazi Arif-uz-Zaman and Mohammad Nazim Uddin.
As per the office order, committee members will be entitled to allowances for attending meetings in line with existing regulations. The merger initiative comes in the wake of severe irregularities and corruption under the ousted Awami League government, which left the five Islamic banks in a vulnerable position. Bangladesh Bank has therefore moved to consolidate them into a single Shariah-based entity. The new bank will be established with a capital base of Tk35,000 crore, of which Tk20,200 crore will be provided by the government in the initial phase, while the remainder will be sourced through loans.
