Bangladesh Bank has announced a major restructuring initiative involving the consolidation of five financially distressed Shariah-compliant banks into a single, larger Islamic banking entity. As part of this move, the central bank has formally dissolved the boards of directors of all five institutions, according to official letters sent to their respective managing directors.

The banks affected by the decision are Exim Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank.

According to central bank sources, the merger plan was deemed necessary after prolonged financial instability within these institutions. Over recent years, the banks are reported to have faced severe liquidity pressures, governance concerns, and growing difficulties in meeting their obligations to depositors. These challenges ultimately prompted Bangladesh Bank to intervene with decisive corrective measures.

Government approval has already been secured for the consolidation plan, which aims to safeguard depositors’ interests, stabilise the Islamic banking sector, and restore confidence in the affected institutions. The newly formed bank will operate under a unified management structure, overseen by a reconstituted board appointed in accordance with regulatory guidelines.

Bangladesh Bank officials noted that combining the institutions is expected to streamline operations, improve oversight, and help create a more robust Islamic banking entity capable of meeting capital adequacy requirements and regulatory standards. The restructuring process will be monitored closely to ensure continuity of services for customers during the transition.

Further details regarding the governance framework, integration timeline, and the name of the consolidated bank are expected to be announced in due course.