Governor assures customers of five failed banks

Bangladesh Bank has taken control of five private Islamic banks that are to be merged. Five central bank officials have been appointed in each bank, and the existing boards of directors have been declared abolished. As a result, from now on, First Security Islami, Global Islami, Union, Exim and Social Islami will be managed by the administrators appointed by Bangladesh Bank.

Bangladesh Bank officially sent a letter to the management authorities of the five banks on Wednesday (November 5) informing them of this decision. It is reported that the entire process of forming the merged bank may take more than two years to complete.

In a press briefing on Wednesday afternoon, Governor Dr. Ahsan H. Mansur declared the five banks as failed and informed about the appointment of administrators. He also assured customers of these banks that there is nothing to worry about.

He said that the merged bank will be the largest bank in the country. There is no need to worry about the money deposited by the depositors of this bank. The bank will be government-owned, but will be privately run. As a result, the salaries of employees will be market-based, and depositors will get profits at market rates.

It was announced at the press conference that no one will lose their jobs at the five banks. Depositors will be able to withdraw money from this month. A total of up to 2 lakh taka can be withdrawn.

Governor Ahsan H. Mansur said that although administrators have been appointed in the banks, the activities will continue as before. In addition, the consolidation process will continue. Each depositor can withdraw up to 2 lakh taka if they want. However, since they are government banks, they will not need to withdraw money unless necessary. When large depositors will be able to withdraw money will be announced later through the gazette.

Ahsan H. Mansur said that there are a total of 750 branches of the five banks. As a result, all the manpower that is available will remain. Bangladesh Bank will verify where these branches can be transferred. Manpower is needed for this.

When asked what will happen to the shareholders, Ahsan H. Mansur said, "The amount of loss incurred by these banks has reduced the value of each share of 10 taka to negative 350 to 420 taka. As a result, according to international practice, the shareholders will not get anything. Their shares have become zero. We are not demanding money from them, this is their fate. However, those who have invested in bonds will get money or shares."