Written by The Banking Post
Finance Adviser Dr. Salehuddin Ahmed on Tuesday said the government has identified 22 non-bank financial institutions (NBFIs) in distress and will act quickly to resolve the issues.
“Some 22 institutions have been identified and we will do something very soon,” he told reporters after a meeting of the Advisers’ Council Committee on Government Purchase at the Secretariat. He assured that clients would not be affected by any steps taken.
On the proposed bank merger, Salehuddin confirmed that Bangladesh Bank had recommended consolidating five Shariah-based private commercial banks, and the Finance Ministry had given its consent in principle.
The banks—First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank—will be merged to form United Islami Bank (UIB), which will be the largest bank in the country. The government will inject Tk 20,200 crore in initial capital, while the required capital for the new entity is set at Tk 35,200 crore.
The decision was finalised at a Finance Ministry meeting on Monday, chaired by Adviser Salehuddin Ahmed and attended by senior officials, including the Finance Secretary, NBR Chairman, and Bangladesh Bank representatives.
A working committee led by Deputy Governor Md. Kabir Ahmmod has been tasked with drafting a time-bound action plan for the merger. Last week, three of the five banks agreed to the move, while EXIM Bank and Social Islami Bank sought more time. The central bank, however, cited auditor reports showing no alternative to consolidation.
