Thousands of depositors across several troubled banks in Bangladesh remain unable to access their savings despite regulatory intervention, emergency liquidity support and an ongoing restructuring programme, raising concerns over confidence in the country’s banking sector.
The restrictions affect customers at First Security Islami Bank (FSIB), Social Islami Bank (SIBL), Global Islami Bank, Union Bank and EXIM Bank, which have faced prolonged liquidity shortages, governance failures and financial distress over the past two years, leading to withdrawal limits, delayed transactions and disruptions to normal banking services.
FSIB, SIBL, Global Islami Bank and Union Bank came under the S Alam Group during the previous government, while EXIM Bank was controlled by another influential business group. After the political change in August 2024, Bangladesh Bank alleged that weak governance, insider lending and large-scale loan irregularities had severely weakened these institutions, allegations the S Alam Group has denied in public statements and legal proceedings.
As conditions deteriorated, non-performing loans surged, capital positions weakened and liquidity shortages intensified, triggering loss of confidence and heavy withdrawal pressure that further worsened cash shortages, with customers reporting withdrawal limits, delays and service disruptions.
In response, Bangladesh Bank placed the lenders under close supervision and launched a restructuring programme, including plans to consolidate the five banks as part of wider reforms to strengthen governance, protect depositors and rebuild confidence.
Bangladesh Bank’s Asset Quality Reviews (AQRs) found non-performing loans between 49 per cent and 98.5 per cent, along with severe capital shortfalls and provisioning deficits. Latest financial statements show combined liabilities of around Tk1.97 lakh crore, underscoring the scale of the challenge.
To ease liquidity stress, the central bank introduced a Tk111 billion Credit Guarantee Scheme in 2024, of which Tk73.5 billion has been used, and allocated Tk235 billion in special liquidity support for cash-strapped banks.
More recently, the government also announced a Tk200 billion financial support package to facilitate the restructuring and proposed consolidation of the five troubled Islamic banks into a single entity under Bangladesh Bank’s recovery plan. The package is intended to help restore liquidity, stabilise operations and protect depositors during the restructuring process.
Despite these measures, liquidity conditions have yet to normalise, with continued withdrawal limits, delays and restricted access to deposits across several banks.
Among those affected is migrant worker Jamal Hossain, who deposited nearly Tk3.8 million at a Social Islami Bank agent outlet in Lakshmipur Sadar upazila after working abroad for years and returned about two years ago to start a business. When he attempted withdrawal, he was told the branch lacked cash and advised to visit a larger branch. “I sent my brother to Social Islami Bank’s Karwan Bazar branch in Dhaka… Instead, he was told that I could withdraw only Tk5,000 a day,” Jamal said. He later returned abroad for work, adding: “I am still waiting to see what decision the government takes regarding our money… I genuinely worry whether I will ever recover my hard-earned savings.”
For Arif Hossain, a depositor of First Security Islami Bank, about Tk6 million remains locked in savings, current and fixed deposit accounts, most deposited in 2023–2024. He said repeated withdrawal requests were rejected due to restrictions and that promised two-monthly profit payments could not be verified. “Branch officials repeatedly told me they were acting under instructions from higher authorities and had no authority to approve withdrawals,” he said.
Arif said the situation has become critical as he needs funds for medical treatment, but no release was allowed.
While restructuring continues, Bangladesh Bank’s AQR findings show severe capital shortages, massive provisioning deficits and high classified loans across the five lenders, with liabilities of around Tk1.97 lakh crore, underscoring the challenge of restoring stability.
For many depositors, reforms have not translated into normal banking services. Abdur Rashid, a garment factory worker in Dhaka from Jessore Sadar upazila, deposited Tk792,000 at EXIM Bank’s Jessore branch and said he has been unable to recover it despite repeated visits. “Every time they tell me to wait a little longer… But I still haven’t received a single taka,” he said.
The prolonged restrictions have also affected families with healthcare needs. Mahmodul Hasan Tareq said his family struggles to access deposits in Union Bank and FSIB, where his father keeps lifetime savings and he holds an account, while his diabetic mother requires regular access to funds.
Tareq said withdrawals are limited to Tk10,000–Tk20,000, forcing repeated branch visits. Despite an active FSIB account, he said access remains restricted. Screenshots show a balance of Tk100,393.75 on 5 July, with Tk437.50 credited as profit at 5.25 per cent and Tk43.75 deducted as 10 per cent tax at source. However, a transfer attempt to bKash failed, with the message: “This Service is currently disabled by First Security Islami Bank PLC.”
The liquidity stress is not confined to the five Islamic banks.
Rakibul Hasan, a UK-based Bangladeshi expatriate and British citizen, said he has been unable to recover Tk2 million deposited at National Bank’s Gopalpur branch in Tangail. He said he has spent two years attempting withdrawal after depositing the money around three and a half years ago, with officials citing inadequate liquidity. He said he now only wants the principal amount, adding that the issue reflects pressures beyond the five banks under restructuring.
Although Bangladesh Bank has injected emergency liquidity, strengthened supervision and begun restructuring, many depositors remain unable to access savings, with confidence yet to be restored in parts of the banking system.
