Central bank to rationalise pay as Islamic banks merge

Bangladesh Bank (BB) plans to rationalise the salary structures of employees at the five struggling Islamic banks set for merger, as part of efforts to reduce their administrative costs.

Speaking to reporters, BB assistant spokesperson Mohammad Shahriar Siddiqui said the five banks will be consolidated into the country's largest Islamic bank, to be named Sammilito Islami Bank.

Before the new entity is formally established, he said, the central bank intends to introduce an interim rationalised salary structure for employees across the merging banks to help contain expenses. "But nothing has been finalised yet," he added.

Once the new bank is created through the merger, he said, its board of directors will have the authority to revise the structure again or introduce a fresh one.

The banks involved in the merger are Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank and Global Islami Bank.

Earlier, on November 9, the central bank's board, chaired by Governor Dr Ahsan H Mansur, granted preliminary approval for the new Shariah-based, state-owned Sammilito Islami Bank to begin operations following the merger of the five weak banks.

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