Dhaka, Nov 05 (V7N) — Bangladesh Bank has dissolved the boards of directors of five financially troubled Shariah-compliant banks and declared them ineffective, paving the way for their potential merger. The move follows a proposal from the central bank and a recommendation from the Financial Institutions Department.

The central bank officially informed the Managing Directors of the affected banks through letters on Wednesday. The banks include:

  • Exim Bank

  • Social Islami Bank

  • First Security Islami Bank

  • Union Bank

  • Global Islami Bank

Reports indicate that during the previous government, four of these banks were owned by businessman S Alam, while the remaining bank was owned by Nazrul Islam Majumder. Allegations have surfaced that the financial health of these banks deteriorated due to mismanagement and large fund transfers in the names of the banks.

The move aims to stabilize the Shariah-compliant banking sector and ensure better governance and financial oversight.

END/SMA/AJ