Written by M. Abdullah
Bangladesh Bank is moving ahead with plans to merge five crisis-hit Shariah-based banks into a new state-run entity, with the name United Islamic Bank emerging as the frontrunner.
Bangladesh Bank Governor Dr. Ahsan H. Mansur has already prepared a draft letter seeking the Finance Ministry’s approval to kick off the merger process. Officials say the letter will be sent within days, clearing the way for the country’s largest-ever banking consolidation.
The banks slated for merger are Union Bank, Global Islami Bank, First Security Islami Bank, Social Islami Bank (SIBL), and EXIM Bank.
Naming Battle Settled
Multiple names were floated during a task force meeting, including Al Amana Islami Bank, Al Ehsan Islami Bank, and Al Falah Islami Bank. But insiders say the governor’s proposal — United Islamic Bank — has gained overwhelming support from members.
“The name of a bank is critical for market acceptance,” said First Security Islami Bank Chairman Mohammad Abdul Mannan. “We welcome an Islamic name. A secular one would have faced objections.”
Merger Mechanics
Task force members confirmed that drafts of the Articles and Memorandum of Association have already been prepared and sent to the Finance Ministry, which will finalize them.
“Technically, the responsibility lies with the ministry,” said one member, speaking on condition of anonymity. “But to save time, we’ve done the groundwork.”
Race Against Time
Bank insiders warn that any delay could complicate the process.
“If the merger is completed swiftly, it will restore public confidence,” said the chairman of First Security Islami Bank. “Delays risk making the situation worse.”
Once the Finance Ministry signs off, formal steps to establish the new bank will begin — officially marking the birth of United Islamic Bank.
