5 Islamic banks set to merge soon

Staff Reporter :

Bangladesh Bank Governor Ahsan H Mansur announced on Sunday that the long-anticipated merger of five private-sector Islamic banks is now in its final stages, assuring stakeholders that no employees will lose their jobs during the process.

Speaking at a press conference at the central bank headquarters, the governor stressed that the initiative is entirely independent of the upcoming national elections.

“This is part of a continuing reform effort. We expect the next elected government to carry it forward, but we are not waiting for the polls
the merger will be completed within the next few months,” Mansur said.
He added that employees of the affected banks should not be concerned about job security.

“No one will be dismissed. If necessary, some branches will be relocated – particularly in cases where there is a concentration of branches in urban areas. These may be moved to underserved rural regions,” he explained.
Turning to the issue of asset recovery, particularly funds laundered abroad, the governor said that the legal process must take precedence.

“No asset can be recovered without a final court verdict. First, we must collect concrete evidence and file the necessary legal documentation,” Mansur noted.

He emphasised the role of the courts in verifying claims and added that recoveries would only be possible once judicial decisions are issued.
“There is also the option of Alternative Dispute Resolution (ADR),” he said, referring to an out-of-court settlement process that involves legal representatives from both parties working towards a mutually agreed resolution.

The governor clarified that any decision to pursue asset recovery – whether through the courts or via ADR – will be made by the interim government.
“Once we receive guidance, Bangladesh Bank will make the required preparations and appoint legal counsel to proceed accordingly,” he stated.

He further explained that domestic asset recovery must be pursued through local courts, while foreign assets require legal proceedings in the jurisdictions where the assets are located.
“Preparations are underway to address both fronts,” Mansur concluded.