Bank Mergers to Continue, Governor Confirms

Bangladesh Bank Governor Mostaqueur Rahman has affirmed that the ongoing process of bank consolidation will continue, alongside the implementation of robust measures to recover defaulted loans. He has also directed that closed factories with outstanding debts be reopened following regulatory compliance, signalling a focus on both financial stability and economic revitalisation.

The announcement came during a meeting on Tuesday (3 March) with the administrators of five banks currently under merger. All administrators are Bangladesh Bank officials temporarily overseeing the management of the respective institutions.

Governor Rahman assumed office last Thursday, succeeding Ahsan H. Mansur, who was relieved of his duties. During his tenure, Mansur initiated several reforms, including the consolidation of weak banks. Following the change in government and central bank leadership, questions had arisen regarding the continuity of these reforms. However, Governor Rahman has made it clear that the reform agenda, including bank mergers, will proceed without interruption.

According to sources at the meeting, the governor was briefed on the reasons for consolidation and the progress made so far. He emphasised the need to:

Increase deposits and strengthen capital within the merged banks

Take all possible measures to recover non-performing loans

Reopen debt-laden closed factories in compliance with regulations

He expressed hope that these steps would boost employment and business activity. It was also confirmed that managing directors for the consolidated banks will be appointed shortly.

Merged Banks Forming ‘Combined Islami Bank’

The five banks—Union Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank—have been merged to form the Combined Islami Bank. Previously, EXIM Bank was under the control of Nazrul Islam Majumdar, a former chairman of the Bangladesh Association of Banks. The other four were controlled by Saiful Alam of the Chattogram-based S. Alam Group. Both Majumdar and Alam are known to have close ties to former Prime Minister Sheikh Hasina.

The headquarters of the new bank has been inaugurated at Senakalyan Bhaban, Motijheel, Dhaka, with the government also appointing the chairman and board of directors. The consolidation is expected to strengthen governance, improve operational efficiency, and restore public confidence in these financial institutions.

Governor Rahman’s directives indicate that the central bank is committed to maintaining financial discipline, facilitating loan recovery, and supporting industrial revival, even as structural reforms continue under the new leadership.