B Mirror Report: The government has started the process of selecting a managing director for Sammilito Islami Bank, signalling renewed administrative activity at the newly merged Islamic lender after weeks of uncertainty.

Bangladesh Bank has begun interviewing candidates for the top post following instructions from the finance ministry, which owns the bank. Officials said around 10 candidates have already been interviewed over two days.

The development comes as debate continues over the amended Bank Resolution Act 2026, which allows former shareholders of troubled banks to regain conditional control—raising concerns among regulators and international development partners.

Sammilito Islami Bank was formed last year through the merger of five financially distressed Shariah-based banks: Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank and EXIM Bank.

Uncertainty over the bank’s future intensified after the latest amendment to the resolution law, passed in April, introduced a mechanism allowing former owners to reclaim control by paying 7.5 percent of government-provided funds upfront, with the rest repayable over two years with interest.

The issue gained further attention after former shareholders of Social Islami Bank Ltd formally applied to regain control under the revised framework, prompting regulatory scrutiny.

Earlier, Bangladesh Bank declared the net asset value of the five merged banks as zero due to deep capital erosion and classified them as non-viable. Trading in their shares remains suspended by the Bangladesh Securities and Exchange Commission, although the entities are still listed.

Under the merger plan, the government injected Tk 200 billion into the new bank, while another Tk 150 billion was expected from the deposit insurance fund, creating a capital base of Tk 350 billion. Of the government funds, Tk 100 billion was invested in Sukuk bonds, with the remaining cash largely held at the central bank.

Officials said the Bank Resolution Ordinance 2025, introduced under recommendations from the IMF and World Bank, was intended to strengthen financial sector reforms. However, recent policy changes have raised concerns among development partners and are believed to have contributed to delays in IMF disbursements.

Despite ongoing policy uncertainty, officials said some movement has recently been seen in the merger process after more than two months of stagnation.