Written by The Banking Post
Bangladesh Bank (BB) has proposed administrators for five Shariah-based banks that are under review for potential mergers due to financial instability. The central bank finalized the list of administrators on Sunday, aiming to stabilize the troubled banks.
Md Shawkat Ullah Alam, an Executive Director at BB, has been nominated as the administrator for EXIM Bank. Another Executive Director, Muhammad Badiul Alam Didar, is set to take charge of Social Islami Bank (SIBL). Three other directors have been proposed for the remaining banks: Md Salahuddin for First Security Islami Bank (FSIBL), Mohammad Abul Hashem for Union Bank, and Maksudul Alam for Global Islami Bank.
BB’s decision to appoint administrators comes as part of efforts to address the severe financial crisis facing these five banks, which have been plagued by irregularities and corruption during the previous government’s tenure. The banks’ ongoing financial struggles have raised concerns over the safety of depositors’ funds.
Following a special meeting on September 16, the Bangladesh Bank Board of Directors decided to move forward with appointing administrators and exploring the possibility of merging these institutions. This move is aimed at safeguarding the interests of depositors and ensuring the banks’ long-term stability.
