The Bangladesh Merchant Bankers Association (BMBA) has criticised Bangladesh Bank’s decision to declare the share value of investors in five merged Islamic banks as “zero”, calling it “harsh and unilateral.”
Representing the country’s investment banks, BMBA voiced concerns that the move is “against investors’ interests” and could have a “negative” impact on the capital market.
In a press release issued on Tuesday, BMBA referred to recent media reports stating that the share value of investors in the five Islamic banks would be considered ‘zero.’
“Following this announcement, shareholders have expressed deep concern and disappointment, as they have legally invested for years, adhering to all regulations,” the association stated.
While respecting Bangladesh Bank’s role in maintaining financial sector stability, BMBA argued, “Declaring the share price of general investors ‘zero’ after years of regular investment is a harsh and unilateral decision.”
The association further emphasized that this move could erode investor confidence and negatively affect the capital market.
BMBA believes that the valuation of shareholders has not been adequately considered. It has proposed that an independent evaluation committee be formed to reassess the share value determination process. The association also suggested that shareholders be given an opportunity to present their opinions before any final decision is made.
In cases of mergers or restructuring, BMBA recommended considering compensation or integrated solutions based on international standards.
The association expressed hope that Bangladesh Bank, in consultation with other relevant policymakers, will reconsider the decision, ensuring both the stability of the banking sector and the protection of investors’ legitimate rights.
