Bangladesh Bank Governor Mostaqueur Rahman has issued a decisive directive to accelerate the consolidation of five financially weak Shariah-compliant banks into a single, unified institution. Addressing senior executives and board members at a high-level meeting on Monday, the governor highlighted the urgent need to integrate technology systems, operational processes, and governance frameworks to ensure the swift revitalisation of the newly formed Summit Islamic Bank.
Urgency of Consolidation
Governor Rahman stressed that there is no alternative to consolidation within the ongoing banking sector reform. “The sooner the integration is completed, the faster the combined bank can regain financial strength, protect depositor interests, and serve its clients efficiently,” he said. He instructed that all five banks adopt uniform IT platforms and standardise operational procedures to create a seamless management system within the new institution.
The meeting, held at Bangladesh Bank headquarters, included senior administrators from the five banks and supporting officials managing the integration process. The governor questioned delays in technology harmonisation, and officials explained that each bank currently operates on different IT systems, complicating data consolidation. Additionally, rumours questioning the continuity of the merger were creating unnecessary hesitation.
Government Backing and Capital Infusion
Governor Rahman underscored the substantial financial support already provided by the government. The new institution has received BDT 20,000 crore in capital, alongside BDT 12,000 crore from the Deposit Insurance Fund allocated to customers of the five merging banks. He stressed that such resources provide a strong foundation, making it imperative to complete integration without further delay.
| Bank Name | Status Pre-Consolidation | Key Notes |
|---|---|---|
| EXIM Bank | Weak, Shariah-compliant | One of the five banks merged |
| Social Islami Bank | Weak, Shariah-compliant | Historical network in retail banking |
| First Security Islami | Weak, Shariah-compliant | Focus on SME financing |
| Global Islami Bank | Weak, Shariah-compliant | Strong regional presence |
| Union Bank | Weak, Shariah-compliant | Niche corporate client base |
| Summit Islamic Bank | Newly formed entity | Unified IT, operations, and governance |
“There is no turning back from this consolidation,” the governor asserted. “It is now the responsibility of bank management to ensure full operational integration and professional governance.”
Leadership Transition
In a related development, Mohammad Ayub Mia, chairman of Summit Islamic Bank, submitted his resignation for personal reasons. Mia, a former government secretary, had been appointed the bank’s first chairman on 7 December last year and formally submitted his resignation to the Secretary of the Ministry of Finance’s Financial Institutions Division on Monday.
Governor Rahman assured that the leadership transition would not hinder the integration process, stressing that disciplined management and clear governance structures are essential to stabilising the bank and safeguarding both depositor and investor interests.
Strategic Path Forward
The merger of EXIM, Social Islami, First Security, Global Islami, and Union Bank into Summit Islamic Bank marks a significant milestone in Bangladesh’s banking reform agenda. By consolidating IT systems, standardising operations, and reinforcing governance frameworks, the central bank aims to create a financially robust, professionally managed, and Shariah-compliant institution capable of restoring public confidence, expanding depositor services, and supporting broader economic growth.
Governor Rahman concluded that the rapid execution of integration measures, combined with ongoing government support and professional management, will enable Summit Islamic Bank to reclaim its position as a leading institution within Bangladesh’s financial sector.