Economists express concern over bank merger; Bangladesh Bank remains confident

Economists and banking experts have expressed deep concern over the government’s plan to merge five struggling Shariah-based banks into a single entity named United Islami Bank, saying such a move will not solve the underlying problems of the banking sector; Bangladesh Bank remains confident that the merger will restore depositors’ confidence in the affected banks.Speaking at a seminar titled “Transition of Banking Sector in Bangladesh: Challenges and the Way Forward” organized by the Department of Banking and Insurance of Dhaka University on Tuesday, experts said merging banks is not a sustainable solution. Without addressing the root causes, they warned, the crisis could deepen once an elected government takes office.The central bank has decided to merge five Shariah-based banks — First Security Islami Bank, Social Islami Bank, Global Islami Bank, EXIM Bank, and Union Bank — into one state-owned large Islamic bank. Bangladesh Bank expects to complete the merger by November.These ...

• 28 Oct 2025