Five Islamic banks set to merge soon, no job losses: BB governor

Bangladesh Bank governor Dr. Ahsan H. Mansur has announced that the process of merging five private Islamic banks is at its final stage.

He assured that no employees would lose their jobs as a result of this merger.

Speaking at a press conference held at the central bank’s boardroom on Sunday, the governor clarified that the merger process has no connection with the upcoming national elections.

"This is an ongoing initiative. We expect the next government to continue this process as well," he said.

He added that the five Islamic banks are expected to complete the merger within the next few months, without waiting for the elections.

The five banks set to be merged are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank, according to a UNB report. 

Dr Mansur emphasised that employees had no reason to worry. Some branches may be reorganised if necessary.

"For banks with a higher concentration of branches in urban areas, initiatives may be taken to relocate some branches to rural areas," he added.

In response to a question regarding the repatriation of laundered assets, the governor said, "The process of recovering assets is a long-term and step-by-step procedure. It is not possible to recover these funds without a final court verdict. For this, specific information and data must be collected, and proper legal procedures followed."

He went on to say, "We want our claims to be verified through the court. Action to recover funds can only be taken based on court decisions."

Dr Mansur also highlighted the Alternative Dispute Resolution (ADR) method, stating, "The path for asset repatriation through amicable settlement outside court is also open. In such cases, lawyers from both sides will seek solutions through discussion. Bangladesh Bank will prepare accordingly and appoint lawyers based on the path the government determines—be it through court or ADR."

The governor mentioned that preparations are underway to conduct legal proceedings in domestic courts for the recovery of local assets and in relevant foreign courts for the recovery of overseas assets.