Depositors of 5 Islamic banks to get full refunds within 2yrs: Governor
According to the governor, revised accounts for the 2024–25 fiscal year show significant financial losses at these banks, but neither past nor current losses have been imposed on depositors
All depositors of five troubled Islamic banks will receive their deposited funds within the next two years, Bangladesh Bank Governor Ahsan H Mansur said today (15 January).
"The decision on refunding deposits was taken based on the advice and consent of the Shariah Council and every effort is being made to protect the interests of depositors," he said while speaking at a press briefing regarding the Sammolito Islamic banks.
He added that the process of returning depositors' money has also been designed strictly in accordance with Shariah Council guidelines.
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The governor clarified that the government is not only returning the principal amounts. "Investment profits or interest that were recorded on paper up to 2024 will also be paid to depositors."
"If someone kept their money in these banks for a long period … say, 10 years … they will receive their full principal along with the returns that were shown for that period," he said.
"Even if those investments were mismanaged or did not actually take place due to failures of the previous management, the decision has been made to compensate depositors in full," he added.
Mansur added that although Islamic banking principles generally require losses from genuine investments to be shared among partners, in this case the losses have not been passed on to depositors. Instead, the government has assumed responsibility for the losses.
According to the governor, revised accounts for the 2024–25 fiscal year show significant financial losses at these banks, but neither past nor current losses have been imposed on depositors.
"There are some limitations under Islamic Shariah principles, which is why not all additional benefits could be provided. However, both the actual deposits and the profits recorded on paper have been paid," he said.
The governor also mentioned that a small group of troublemakers attempted to create unrest at several branches, particularly Union Bank, but no major damage occurred. He urged ordinary depositors not to be influenced by such activities.
Reassuring the public once again, Ahsan H Mansur said that after the appointment of new management, especially for deposits made after the first of this month, there are no restrictions on withdrawals.
Depositors can withdraw funds on demand and are receiving returns at market-based rates, he added.
