Discussions on whether the general shareholders of the five Islamic banks that are presently going through a process of financial sector consolidation will be compensated have been reignited by a remark made by Economic Adviser Dr. Salahuddin Ahmed. He claimed that the issue will be taken into consideration collectively and that the government is not at way disregarding it.

On Tuesday (18 November), after meetings of the Cabinet Committee on Government Purchase and the Cabinet Committee on Economic Affairs held at the Secretariat, journalists asked about compensation for general shareholders of the five banks who have incurred losses. In response, the Economic Adviser said, “Let’s see what can be done for them. We will look into it jointly. We are not ignoring it.”

However, despite multiple questions from journalists, he did not clearly say whether compensation would indeed be provided. On this point he said, “Ask Bangladesh Bank… I won’t say anything about that right now.”

Earlier, rumors had spread that the shares of the five Islamic banks—First Security Islami Bank, Social Islami Bank (SIBL), EXIM Bank, Global Islami Bank, and Union Bank—might be declared worthless (zero value). This triggered significant turmoil in the stock market. Panic spread among investors, and the share prices of these banks plunged sharply.

Later, on 12 October, the Ministry of Finance issued a notice addressing the rumors, stating that the government had not made any decision that investors would suffer losses due to the consolidation process. It also said that the interests of investors were being given due importance.

But on 5 November, at a press conference, Bangladesh Bank Governor Dr. Ahsan H. Mansur stated that the equity value of the five banks’ shareholders had fallen below zero. Therefore, the shares would be considered to have zero value and no one would be compensated.

The next day, on 6 November, Bangladesh Bank issued a new notice saying that the government may consider giving compensation to small shareholders. Then, on 9 November, while speaking to journalists at the Secretariat, the Economic Adviser said that the Governor’s statement was not the final decision—final decisions would be made by the government.

In his latest remarks today, the Economic Adviser made it clear that the question of compensation for shareholders has not been dismissed; rather, necessary discussions and joint consideration of the matter are ongoing.