Bangladesh Bank has finalized the names of administrators for five weak Shariah-based banks set to be merged. The decision was confirmed in a press release issued on Sunday (28 September).
According to the final decision, Executive Director Md. Shawkat Ul Alam will oversee Exim Bank, Muhammad Badiul Alam Didar will take charge of Social Islami Bank, and Md. Salah Uddin will be responsible for First Security Islami Bank. Meanwhile, Directors Mohammad Abul Hashem and Maksudul Alam will serve as administrators for Union Bank and Global Islami Bank, respectively.
Sources at Bangladesh Bank said that to avoid any legal complications regarding the appointment of administrators, a gazette notification will be issued at the beginning of next month following necessary meetings.
It may be noted that during the previous Awami League government, widespread irregularities and corruption left these five banks in dire condition. With most of their loans defaulted, the banks have been unable to return depositors’ money.
To stabilize the situation and restore depositor confidence, Bangladesh Bank recently decided to merge the five banks.