Bangladesh Bank Governor Mostakur Rahman has reiterated the urgent need to complete the consolidation of the Consolidated Islamic Bank, formed through the merger of five underperforming Shariah-based banks, as part of the central bank’s ongoing financial sector reform programme. Addressing a meeting with the banks’ administrators on Monday, 16 March 2026, he emphasised that there is no alternative but to finalise the integration promptly.
Meeting with Administrators
The session, held at the Governor’s office, convened senior officials overseeing the consolidation. Governor Rahman instructed the administrators to accelerate all aspects of the merger, with IT system integration being a key priority.
During discussions, the Governor raised concerns about delays in IT alignment. Officials explained that merging distinct data systems across multiple banks is complex and time-consuming. Despite these challenges, Governor Rahman stressed that the project must proceed without further postponement, noting, “There is no room to step back from this initiative.”
He also highlighted the substantial financial backing for the merger. The government has allocated BDT 20,000 crore in capital to the newly formed bank, while an additional BDT 12,000 crore has been earmarked from the deposit insurance fund to protect customer deposits. These investments underscore the critical importance of completing the consolidation without delay.
Ensuring Continuity and Loan Recovery
Earlier, on 3 March 2026, the Governor met with administrators to assure them that a Managing Director (MD) would be appointed without delay to manage the new bank. Administrators were instructed to continue performing their duties in accordance with regulatory guidelines until permanent leadership is in place.
Governor Rahman also stressed the importance of strengthening loan recovery. Officials were directed to take measures to revive factories and enterprises established with investments from these banks but currently inactive. This step aims to protect both public and private funds and to ensure the long-term financial sustainability of the merged institution.
Banks Included in the Consolidation
The consolidation merges the following five Shariah-compliant banks:
| Bank Name | Status Before Consolidation |
|---|---|
| Exim Bank PLC | Underperforming, Shariah-compliant |
| Social Islami Bank PLC | Underperforming, Shariah-compliant |
| First Security Islami Bank PLC | Underperforming, Shariah-compliant |
| Global Islami Bank PLC | Underperforming, Shariah-compliant |
| Union Bank PLC | Underperforming, Shariah-compliant |
In November 2025, Bangladesh Bank formally appointed administrators for each bank to oversee operational unification, with particular focus on IT system integration. Each bank has been assigned one administrator supported by four officers, all drawn from various levels of the central bank, ensuring consistent regulatory oversight.
Outlook for Consolidation
Governor Rahman’s insistence on completing the integration reflects a broader policy push to strengthen the Shariah-based banking sector while maintaining financial stability. Experts suggest that successful consolidation could enhance operational efficiency, reinforce regulatory compliance, and safeguard the government and deposit insurance investments already made in the new bank.
As the integration proceeds, stakeholders are closely monitoring developments in IT alignment, loan recovery, and management continuity. The Governor’s directives make clear that the consolidation is a non-negotiable priority and a central element of Bangladesh’s ongoing financial sector reforms. The coming months are expected to be decisive in determining the bank’s operational stability and its role in reinforcing confidence in the Shariah-based banking sector.