Dhaka, Oct 09 (V7N) – The Advisory Council has approved in principle the formation of a Sharia-based United Islamic Bank through the merger of five existing Islamic banks.

The approval was granted at the Advisory Council meeting held on Thursday (October 9). Chief Advisor’s Press Secretary Shafiqul Alam confirmed the decision at a media briefing at the Foreign Service Academy in the capital.

According to the briefing, no employees will lose their jobs as a result of the merger, and all depositors’ funds will remain secure.

The five banks that will be merged are:

  • First Security Islamic Bank

  • Global Islamic Bank

  • Union Bank

  • Exim Bank

  • Social Islamic Bank

Sources said that the newly formed United Islamic Bank will initially operate as a state-owned institution, with ownership under the Finance Division of the Ministry of Finance. The government plans to transfer ownership to the private sector at a suitable time in the future.

Meanwhile, the Advisory Council has also approved amendments to the Deposit Protection Act for the banking and insurance sectors to modernize and strengthen the regulatory framework.

END/SMA/AJ