Bangladesh Bank Governor Mostaqueur Rahman has issued a firm directive to expedite the consolidation of five financially weak Shariah-compliant banks into a single, unified institution. Speaking at a high-level meeting on Monday, the governor underscored the importance of integrating technology systems, operational processes, and governance structures without delay to ensure the rapid revitalisation of the newly formed Summit Islamic Bank.
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Urgency and Rationale for Consolidation
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 financial strength, safeguard depositors, and serve its customers efficiently,” he stated. He directed that all five banks adopt uniform IT systems and align 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 overseeing the integration process. The governor raised concerns over delays in technology harmonisation, to which officials responded that each bank currently operates on different IT platforms, making data unification a complex process. In addition, circulating rumours questioning the continuity of the consolidation process were causing further hesitation.
Government Backing and Capital Infusion
Governor Rahman highlighted the substantial financial support already provided by the government. A total of BDT 20,000 crore has been injected as capital into the new institution, alongside BDT 12,000 crore from the Deposit Insurance Fund earmarked for customers of the five merging banks. The governor emphasised that these resources create a strong foundation, reinforcing the urgency of completing the integration.
| 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 |
“There is no turning back from this consolidation,” Governor Rahman asserted. “It is now the responsibility of bank management to ensure full operational integration and professional governance.”
Leadership Transition
In a related development, Mohammad Ayub Mia, chairman of Summit Islamic Bank, submitted his resignation for personal reasons. Mia, a former government secretary, had been appointed as the first chairman of the bank’s board on 7 December last year and formally submitted his resignation to the Secretary of the Ministry of Finance’s Financial Institutions Division on Monday.
Governor Rahman assured that the leadership change would not impede the integration process. He emphasised that professional management and strong governance frameworks are critical to stabilising the bank and protecting the interests of depositors and investors alike.
Strategic Path Forward
The merger of EXIM, Social Islami, First Security, Global Islami, and Union Bank into Summit Islamic Bank represents a landmark step in Bangladesh’s ongoing banking reform agenda. The consolidation aims to create a financially robust, professionally managed, and Shariah-compliant institution, capable of restoring public confidence, expanding depositor services, and supporting broader national economic growth.
Governor Rahman concluded that rapid implementation of integration measures, combined with continued government support and disciplined management, will enable Summit Islamic Bank to reclaim its status as a leading institution within Bangladesh’s banking sector.