Sunday, 5th April 2026
Khabor Wala Desk
Published: 16th March 2026, 6:27 PM
Bangladesh Bank Governor Mostaqueur Rahman has issued a decisive directive to accelerate the consolidation of five weak Shariah-compliant banks into a single, unified institution. Speaking at a high-level meeting on Monday, the governor emphasised that the integration of technology systems, operational processes, and governance structures must proceed without delay to ensure the rapid revitalisation of the newly formed Summit Islamic Bank.
Governor Rahman stressed that bank sector reform leaves no alternative to consolidation. “The sooner the integration is completed, the faster the combined bank can regain its financial strength and serve its customers efficiently,” he said. He instructed that all five banks adopt uniform information technology systems and align their operational procedures under a standardised framework to facilitate seamless management within the new entity.
The meeting, held at Bangladesh Bank headquarters, included senior administrators from the five banks as well as supporting officials involved in the integration process. The governor inquired why technology harmonisation had been delayed, and officials explained that each bank operates on different IT platforms, creating complexities in data unification. Additionally, rumours questioning the continuity of the consolidation process were being circulated, causing further delays.
Governor Rahman reminded the executives that the government has already injected BDT 20,000 crore in capital into the new bank. Furthermore, BDT 12,000 crore from the Deposit Insurance Fund is earmarked for customers of the five merging banks. He underlined that these substantial resources make it imperative to complete the integration swiftly.
| Bank Name | Status Pre-Consolidation | Key Notes |
|---|---|---|
| EXIM Bank | Weak, Shariah-compliant | One of the five banks merged |
| Social Islami Bank | Weak, Shariah-compliant | Historical network in retail banking |
| First Security Islami | Weak, Shariah-compliant | Focus on SME financing |
| Global Islami Bank | Weak, Shariah-compliant | Strong regional presence |
| Union Bank | Weak, Shariah-compliant | Niche corporate client base |
| Summit Islamic Bank | Newly formed entity | Unified IT, operations, and governance |
Governor Rahman emphasised, “There is no turning back from consolidation. The government’s substantial capital injection and insurance fund allocations have laid a strong foundation. It is now the responsibility of bank management to ensure full operational integration.”
Meanwhile, Mohammad Ayub Mia, chairman of the newly formed Summit Islamic Bank, has tendered his resignation for personal reasons. Mia, a former government secretary, had been appointed the first chairman of the bank’s board on 7 December last year. He submitted his resignation to the Secretary of the Ministry of Finance’s Financial Institutions Division on Monday.
Governor Rahman assured that the leadership transition would not delay the consolidation process, stressing that professional management and clear governance structures are essential to stabilising the bank and protecting customer interests.
The consolidation of EXIM, Social Islami, First Security, Global Islami, and Union Bank into Summit Islamic Bank represents a key step in Bangladesh’s ongoing banking sector reform. By integrating IT systems, operational procedures, and governance frameworks, the central bank aims to create a financially robust, professionally managed, and Shariah-compliant institution capable of restoring public confidence and supporting national economic growth.
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