New merged Islamic bank to begin operations next week: Governor

Bangladesh Bank Governor Ahsan H Mansur has said that the newly formed merged Islamic bank, created by combining five Shariah-based banks, will begin operations next week.

He made the statement today, Saturday, November 29, at the “Fourth Bangladesh Economic Conference 2025” held at a hotel in the capital.

The governor said that action was needed regarding non-functioning banks and financial institutions. By applying the Bank Resolution Ordinance, a new, stronger bank was being formed by merging five banks. He expressed hope that the formal launch would take place next week.

He said the Bank Resolution Ordinance was being applied to the five banks, merging them into one new bank. “We are hopeful the launch will take place next week. It will have Tk 35,000 crore in paid-up capital. We are forming one strong bank from five weak ones, and the government is contributing Tk 20,000 crore,” he added.

He said that defaulted loans remain a major problem in the banking sector. Currently, defaulted loans stand at 35 percent. “This is no small issue. More than one-third of loans are in default. I must operate the banking sector with this reality in mind. It will take five to ten years to recover from this situation,” he said.

Regarding the upcoming Ramadan, he said there would be no scarcity of products in the market. Despite difficult conditions last year, the highest supply was maintained during Ramadan. He said he did not expect any shortage this year either.