Depositors, shareholders and employees of five crisis-hit Shariah-based banks are facing considerable uncertainty about their future as the government proceeds with the merger of the banks.
The banks which will be merged into a single entity are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank.
The private commercial banks witnessed widespread anomalies during the Awami League regime which was ousted in August past year amid a mass uprising.
On September 7, the government approved the merger plan, pledging Tk 20,200 crore in budgetary support to facilitate the consolidation.
Amid the merger process, depositors fear for the safety of their money, employees worry about losing jobs and shareholders are concerned about the future of their stakes in the banks.
A lack of clarity about聽 how quickly depositors will be repaid and how many jobs will survive after the merger has heightened anxiety among the stakeholders.
Employees of several affected banks said that many of their colleagues had already lost jobs, and more layoffs were expected as the new entity planned to close redundant branches and consolidate information technology and back-office operations.
Those who lost their jobs earlier said that they were struggling to find new employment because of the damaged reputation of the banks to be merged.
Many now fear losing their only source of income and worry about maintaining their families in case of dismissal.
Under the proposed Bank Deposit Insurance Act, depositors with balances of Tk 2 lakh or less will be given priority in repayment once administrators are appointed to the banks and government funds are released.
They will be able to withdraw their full amount immediately, while those with higher deposits will receive their money in phases.
This has raised concern among large-scale depositors, who fear that they may have to wait years to recover their savings.
BB executive director Arief Hossain Khan, also the spokesperson for the central bank, stated that the merger process would address any concerns from shareholders, employees and depositors according to law.
He added that if any aggrieved party brought the matter to court, the judiciary would make a final decision, which all parties, including the central bank, would accept.
Economists and bankers have urged the government to introduce a safety net, including severance benefits and fresh employment opportunities, to prevent social unrest and maintain confidence in the financial system.
Mustafa K Mujeri, executive director of the Institute for Inclusive Finance and Development, told 抖阴精品 that the merger of the five Shariah-based banks appeared to be taking place in an 鈥榓d hoc manner鈥�, raising concerns about its long-term effectiveness and the challenges it might face at each stage.
He said that there was widespread confusion among both banks and depositors.
鈥楤anks do not know when they will be able to repay depositors, and depositors are equally unsure when they will get back their entire money,鈥� Mujeri said.
鈥楽uch uncertainty is dangerous. If depositors are not repaid on time, it could completely erode public confidence and trigger a collapse of trust in the whole banking sector,鈥� he warned.
Mujeri stressed that depositors, employees, shareholders and all other stakeholders had the right to know exactly what was happening with the merger and how it would affect them.
鈥楾here is still no clear, time-bound action plan for the process,鈥� he observed.
鈥楾he authorities must specify when and how the merger will proceed, which branch offices will be closed, how many employees will be retained, whether shareholders will receive compensation or not, and when depositors can expect to be fully repaid,鈥� he added.
He emphasised that the government and the Bangladesh Bank must also clarify how other liabilities, including employee benefits and shareholder claims, would be settled.
鈥榃ithout a transparent, well-integrated, and time-bound action plan, the entire process risks failure. A lack of clarity and communication will only deepen uncertainty and worsen the crisis instead of resolving it,鈥� Mujeri warned.
As per Section 40 of the Bank Resolution Ordinance 2025, shareholders will not get any compensation.
According to Dhaka Stock Exchange data, general shareholders of the five banks collectively held 582 crore shares valued at Tk 787 crore based on Tuesday鈥檚 market prices of the shares of the banks.
