The central bank has taken the lead in combining five troubled, weak banks. The crisis banks met separately with Governor Ahsan H. Mansur to discuss its continuation.

Global Islami Bank executives met with the governor on Thursday, September 4. The merger was approved by the bank’s board of directors and senior officials during the meeting.

Following the meeting, Mohammad Nurul Amin, the chairman of Global Islami Bank, declared, “We have approved the merger. since Global Islami Bank currently owes over 14,000 crore taka in debt. S Alam Group has taken twelve thousand crore taka out of this. All of these loans are now in default.

Currently, a meeting is taking place between Bangladesh Bank and Social Islami Bank. Additionally, Union Bank and Exim Bank had a meeting with Bangladesh Bank yesterday. Union Bank has consented to the merger. In contrast, Exim Bank has requested additional time to enhance its capacity instead of proceeding with the merger. During the meeting, Exim Bank presented a draft proposal aimed at increasing their capacity to the central bank. Bangladesh Bank has recommended that the proposal be articulated more clearly and in greater detail. Subsequently, they will submit the plan to the central bank with a comprehensive and detailed explanation.

Exim Bank Chairman Nazrul Islam Swapan stated, “We have put forward a roadmap to enhance our capacity. Bangladesh Bank has requested that we clarify and elaborate on it. We will present a detailed plan to the central bank in the upcoming meeting.”

Previously, in a meeting with the central bank on Tuesday, First Security Islami Bank agreed to merge. The chairman of the bank, Mohammad Abdul Mannan, remarked, “We do not oppose the decision made by Bangladesh Bank. The central bank will address the matter of depositor protection. S Alam has taken Tk 38,000 crore anonymously from First Security Bank. Due to the lack of opportunity to withdraw funds in his own name, benami loans were acquired. The bank has encountered significant issues because the funds from these benami loans have not been recovered.” The central bank is currently conducting a meeting with the troubled Social Islami Bank.

The banks that the central bank is working to merge during this crisis include Social Islami Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Exim Bank.