Bangladesh Bank has initiated the process of withdrawing administrators from five Shariah-based banks that were merged under Sammilito Islami Bank PLC. In the first phase, the central bank has directed the withdrawal of administrator and their team from EXIM Bank.
Following a decision by the central Bank board of directors on Wednesday, a formal letter was dispatched to EXIM Bank on Thursday.
Arief Hossain Khan, spokesperson and executive director of the central bank, confirmed the move, saying, “The decision to remove the administrator from EXIM Bank has been made.”
This step marks the official commencement of the administrator withdrawal process across the five banks.
According to the regulator’s plan, administrators and their teams will be phased out from First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank by August.
However, the withdrawal will not occur simultaneously at all institutions. Instead, responsibilities will be handed over in stages, based on an assessment of each bank’s financial condition, operational readiness, and the progress of its restructuring.
The development follows high-level discussions held on 20 July, when Bangladesh Bank Governor Mostakur Rahman met with the board members of Sammilito Islami Bank PLC.
The governor had also held separate meetings with the administrators of the five banks the previous day, an occasion attended by Abedur Rahman Sikder, the first managing director of Sammilito Islami Bank.
Under the agreed framework, the board of Sammilito Islami Bank will hold individual meetings with the administrators of each bank to review their financial status, operational capacity, and restructuring progress.
Based on these reviews, recommendations will be sent to Bangladesh Bank regarding which bank’s responsibility should be taken over next. The central bank will only withdraw an administrator once the formal handover of responsibility to Sammilito Islami Bank is finalised.
Sammilito Islami Bank PLC was established with an authorised capital of Tk35,000 crore as part of the interim government’s restructuring plan. The government has already provided Tk20,000 crore in capital support to the entity.
