Bangladesh Bank Governor Md Mustaqur Rahman on Tuesday, March 1, affirmed that the operations of Sammilito Islami Bank, formed through the merger of five Shariah-based banks, will continue as planned.
The Governor also sent a stern warning to those involved in the misappropriation of funds from these banks during the tenure of the fallen Awami League government, stating that the government will ensure they face legal punishment.
Governor Rahman shared these directives during a meeting with the newly appointed administrators of the five banks and senior officials of the central bank at his office today, according to meeting sources.
During the meeting, the Governor instructed officials to expedite the appointment of a Managing Director for Sammilito Islami Bank. He confirmed that the current Board of Directors will remain in place to oversee the transition.
In a move to stabilise the economy, the Governor emphasised the revival of industrial units under the jurisdiction of these five banks.
"Initiatives must be taken to restart factories that are currently non-functional. We must ensure these units return to production," he reportedly said, adding that the central bank would assist in clearing any outstanding foreign dues of these institutions to facilitate operations.
Officials present at the meeting noted that the Governor’s clear stance has dispelled the prevailing confusion and rumours regarding the future of the merger.
This follows a similar message delivered by the Governor on Sunday during a meeting with representatives from the Association of Bankers, Bangladesh (ABB). In that meeting, he asserted that ongoing reforms in the banking sector would continue unabated and that he would not succumb to any political pressure.
Furthermore, in alignment with the current government’s electoral pledge to create 10 million jobs within the first 18 months, the Governor pledged policy support to revive factories that were shut down due to recent political shifts.
Following the fall of the Awami League government, the interim administration merged five struggling banks—EXIM, Social Islami, First Security Islami, Union, and Global Islami Bank—to form Sammilito Islami Bank.
The new entity began its journey with a total capital of Tk 35,000 crore. Of this, the government provided Tk 20,000 crore, while the remaining Tk 15,000 crore will be sourced from a dedicated fund for depositors.
Additionally, an initiative is underway to pay out Tk 12,000 crore from the Deposit Insurance Fund to approximately 78 lakh depositors, with each receiving up to Tk 2 lakh.
Source: UNB