Written by The Banking Post
Deposits of customers of five Shariah-based banks undergoing a merger will be transferred to the newly formed Sommilito Islami Bank within the next week, as the process enters its final stage, according to Bangladesh Bank.
Once the transfer is completed, all depositor accounts will be automatically moved to the new bank, Bangladesh Bank spokesperson Md Areif Hossain Khan said on Wednesday.
After the transfer, depositors will be able to withdraw up to Tk200,000 using their existing cheque books. Any remaining balance will stay secured in their accounts, and depositors will continue to earn profit at the prevailing rates.
The central bank expects the move to help restore public confidence, as Sommilito Islami Bank will operate as a state-owned institution.
“As the bank will be state-owned, people’s trust is expected to increase, which should significantly reduce the pressure from deposit withdrawals,” the spokesperson said.
The merger of the five troubled Islamic lenders into a single entity is part of the government’s broader effort to stabilise the banking sector and address concerns over asset quality and liquidity.
