Govt May Consider Compensating Investors in Troubled 5-Bank Merger: BB

DHAKA, Nov 10, 2025 (BSS) – Executive Director and Spokesperson of Bangladesh Bank (BB), Arif Hossain Khan, stated today that the government may consider compensating general investors who have been affected by the merger of five struggling Islamic banks.

“If small, affected investors approach the government with an application, it is expected that the government may address their situation according to its capacity,” he said during a conversation with reporters at his BB headquarters office in the capital.

In response to concerns raised by small investors, the spokesperson acknowledged the challenges faced by individuals who have invested in the affected banks via the share market.

Decision-makers involved in the process may consider addressing these concerns from a humanitarian perspective, potentially setting aside conventional accounting procedures, he added.

Arif Hossain Khan also provided an update on the complex, multi-stage regulatory process currently underway for the proposed merger of the five banks. The overarching plan is to consolidate these troubled banks into a single Islamic bank, he explained.

“The process began when the government submitted a letter of interest to Bangladesh Bank regarding the plan, initially proposed in March, to consolidate five banks into one Islamic bank. Bangladesh Bank has granted its consent to this proposal,” he added.

The spokesperson clarified that the formal establishment of the new entity is dependent on strict adherence to legal procedures.

“The government, as the applicant, must first submit an application to the Registrar of Joint Stock Companies and Firms (RJSC) to formally establish a company. This application must detail aspects such as the board formation and shareholding structure,” he said.

Once the RJSC approves the formation of the company, the next step will be for the new entity to approach Bangladesh Bank.

The company must apply to the central bank for authorisation to be recognised as a bank under the provisions of the Bank Company Act, he added.

He further mentioned that the formal operations of the new bank will commence only after Bangladesh Bank receives the necessary application and grants the final authorisation. The new bank will begin its operations from a principal office once the central bank’s approval is obtained.