Islamic banks being merged into two entities: BB Governor

All Islamic banks will be merged into two entities, announced Bangladesh Bank Governor Dr. Ahsan H. Mansur. He stated that political interference in these banks will be stopped to prevent the establishment of a culture of looting.

He made this statement on Wednesday (April 9) at the 10th Annual Banking Conference (ABC) held at the Bangladesh Institute of Bank Management (BIBM) office in the capital.

Ahsan H. Mansur said that due to irregularities, scandals, and failures in governance, both banks and non-bank financial institutions require reforms. To address this, after the political change on August 5 last year, the Bangladesh Bank initiated a series of reforms in the banking sector, including the formation of a task force, introduction of new laws, and amendments to existing laws such as the Bank Companies Act. As a result, some looted banks have started to recover, but several others are still struggling financially.

The Governor of Bangladesh Bank stated that while not all banks are in bad condition, those that are in trouble are in very bad shape. He emphasized that no one will be allowed to embezzle bank funds and escape, and political interference in banks will be stopped.

He said that in the interest of customers, the central bank will intervene in the boards of banks, and within the next few weeks, the board of another bank will be dissolved.