Five Shariah-based banks are set to be merged into a single entity, with the process beginning possibly next month, Bangladesh Bank governor Ahsan H Mansur said at a press briefing on Sunday.
The central bank will soon begin the process of consolidating First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank, BB officials said earlier.
Mansur assured that employees would not lose their jobs due to the merger, though some branches may be relocated from urban to rural areas for operational efficiency.
The governor dismissed any link between the merger plan and upcoming national elections, stressing that the initiative would proceed without waiting for political transitions.
鈥楾his is an ongoing process. We hope the next government will carry it forward,鈥� he said, adding that state ownership might be considered in managing some of the troubled banks involved.
Alongside the structural reform, the central bank is intensifying efforts to recover assets siphoned off by politically connected individuals, particularly during the regime of ousted prime minister Sheikh Hasina.
The governor revealed that Bangladesh is engaged in high-level technical discussions with the United Kingdom and has already submitted detailed information on individuals involved in money laundering.
In response, the UK鈥檚 National Crime Agency has frozen 拢170 million worth of properties linked to former land minister Saifuzzaman Chowdhury Javed, following an earlier freeze of 拢90 million related to Shayan Rahman and Shariar Rahman of Beximco Group.
Mansur said the central bank had requested mutual legal assistance from several countries and would continue to submit updated information.
Asset recovery, however, remains tied to legal outcomes.
鈥楴o funds can be repatriated without a final court verdict,鈥� he stressed, adding that the Bangladesh Bank is preparing for litigation in both local and foreign courts.
The governor also highlighted the potential use of the Alternative Dispute Resolution (ADR) mechanism, noting that in some cases, settlements outside court may expedite recovery.
This path involves legal representatives from both sides seeking resolution. The decision between litigation or ADR will be taken by the government, he said.
To finance legal battles abroad, international litigation firms have shown interest in investing money in asset recovery.
Bangladesh Bank is considering forming a dedicated fund to facilitate this process, with expectations that a significant amount of laundered money could eventually be brought back.