No depositor of merged banks will lose money: BB

As the merger of five underperforming Shariah-based banks into a new state-owned 'United Islami Bank PLC' has been approved, the central bank today (1 December) assured depositors that none of them will lose their money, and all deposits will remain fully protected.

In a press release, the Bangladesh Bank said that under the Bank Resolution Ordinance, 2025, the five banks -- Exim Bank PLC, First Security Islami Bank PLC, Global Islami Bank PLC, Social Islami Bank PLC, and Union Bank PLC -- were declared defunct and brought under the resolution process.

On 9 November, Bangladesh Bank issued a Letter of Intent approving the creation of United Islami Bank PLC. The new government-owned bank will have a paid-up capital of Tk35,000 crore, of which Tk20,000 crore has already been contributed by the government.

To ensure investment income for the new bank, the new bank is expected to invest Tk10,000 crore in the Shariah-based sukuk bond. This is expected to generate Tk800-900 crore in income for the bank.

Cenbank gives final approval to merge 5 Shariah-based banks into 'United Islami Bank'

The board of directors of Bangladesh Bank approved the bank's license yesterday, appointing former secretary Mohammad Ayub Mia as chairman.

The Bangladesh Bank said the new bank will become the country's largest state-owned Shariah-based bank. Under the Deposit Protection Ordinance, deposits up to Tk2,00,000 will be fully protected in the first phase, with payments to depositors expected soon after the merger is completed. A plan for deposits exceeding Tk2,00,000 will be announced shortly.

The central bank emphasised that the new institution will operate under rigorous supervision and high professional standards, aiming to establish itself as a modern, efficient, and competitive Islamic bank. The government and Bangladesh Bank expect the merger to make the country's banking sector more stable, sustainable, and inclusive, it said.