Written by The Banking Post
First Security Islami Bank (FSIB) has agreed to move forward with a merger under Bangladesh Bank’s reform initiative for struggling shariah-based lenders.
The decision was disclosed after a meeting between FSIB’s board and the central bank on Monday.
FSIB Chairman Abdul Mannan told reporters that Bangladesh Bank presented an assessment of the bank’s fundamentals, which aligned with reports by an overseas auditor as well as FSIB’s own audit teams. “There were no differences between the findings,” he said.
Mannan also alleged that entities linked to S Alam Group had diverted about Tk 380 billion of the bank’s assets under different names — a claim that could not be independently verified.
A senior FSIB official, requesting anonymity, confirmed that the board had already decided to proceed with a merger in line with the central bank’s advice and formally conveyed the decision at the meeting.
The details — including the prospective partner bank, timeline, and terms of the merger — remain undisclosed.
