Bangladesh Bank Governor Mostakur Rahman has stressed the urgent need to complete the consolidation of the Consolidated Islamic Bank, created by merging five underperforming Shariah-based banks, as part of the central bank’s ongoing financial sector reform programme. Speaking at a meeting with the banks’ administrators on Monday, 16 March 2026, he underscored that there is no alternative but to complete the integration swiftly.
Table of Contents
Meeting with Bank Administrators
The meeting, held at the Governor’s office, brought together senior officials tasked with overseeing the consolidation process. Governor Rahman instructed the administrators to accelerate all aspects of the work, particularly the integration of IT systems, which has been identified as a major challenge.
During the discussions, the Governor questioned why the IT unification process had been delayed. Officials explained that merging the separate data systems of multiple banks is a complex and time-consuming task. Nevertheless, the Governor emphasised that the project must proceed without further postponement, noting, “There is no room to step back from this initiative.”
Governor Rahman also highlighted the significant financial backing already committed to the project. The government has allocated BDT 20,000 crore in capital to the new bank, while an additional BDT 12,000 crore has been earmarked from the deposit insurance fund to safeguard customer deposits. These substantial investments underscore the necessity of completing the consolidation promptly.
Ensuring Continuity and Effective Management
Earlier, on 3 March 2026, Governor Rahman had met with the administrators to assure them that a Managing Director (MD) would be appointed without delay to oversee the new bank’s operations. Administrators were instructed to continue performing their duties in line with regulatory guidelines until permanent leadership is in place.
The Governor also emphasised the importance of loan recovery. He directed officials to take measures to revive factories and businesses established with investments from these banks but currently out of operation, thereby protecting both public and private funds and ensuring the banks’ financial sustainability.
Banks Involved in the Consolidation
The consolidation incorporates the following five Shariah-based banks:
| Bank Name | Status Before Consolidation |
|---|---|
| Exim Bank PLC | Underperforming, Shariah-compliant |
| Social Islami Bank PLC | Underperforming, Shariah-compliant |
| First Security Islami Bank PLC | Underperforming, Shariah-compliant |
| Global Islami Bank PLC | Underperforming, Shariah-compliant |
| Union Bank PLC | Underperforming, Shariah-compliant |
In November 2025, Bangladesh Bank formally appointed administrators for each of these banks to oversee operational unification, with a particular focus on IT integration. Each bank has been assigned one administrator supported by four officers, all drawn from various tiers of the central bank, ensuring close regulatory supervision.
Outlook for Consolidation
Governor Rahman’s insistence on completing the integration reflects a broader effort to strengthen the Shariah-based banking sector while maintaining financial stability. Experts note that successful consolidation could enhance operational efficiency, reinforce regulatory compliance, and safeguard the significant government and deposit insurance investments already made.
As the integration process progresses, stakeholders are closely monitoring developments in IT alignment, loan recovery, and management continuity. The Governor’s directives make clear that the consolidation is a non-negotiable priority and a key component of Bangladesh’s ongoing financial sector reform agenda.