[🇧🇩] Banking System in Bangladesh

[Saif]

Ex-SIBL board seeks to reclaim ownership, promises to run bank independently

Five former directors of Social Islami Bank Limited (SIBL) have formally applied to the central bank to reclaim their ownership and separate the entity from the recently formed state-owned Sammilito Islami Bank. The move comes less than three weeks after the parliament passed the “Bank Resol

thefinancialexpress.com.bd

Ex-SIBL board seeks to reclaim ownership, promises to run bank independently

bdnews24.com

Published :
Apr 27, 2026 23:30
Updated :
Apr 27, 2026 23:30

Five former directors of Social Islami Bank Limited (SIBL) have formally applied to the central bank to reclaim their ownership and separate the entity from the recently formed state-owned Sammilito Islami Bank.

The move comes less than three weeks after the parliament passed the “Bank Resolution” Bill on Apr 11, which included a controversial Section 18(A) allowing former shareholders to regain ownership under specific conditions.

Rezaul Haque, who served as SIBL chairman from 2013 to 2017, led the application filed with Bangladesh Bank (BB) on Monday.

"We can manage the capital required to fix the bank. We have shared our plan and are ready to provide further details if the central bank engages with us," Haque told bdnews24.com.

Other signatories include Jabedul Alam Chowdhury, Hakim Md Yousuf Harun Bhuiyan, Sultan Mahmood Chowdhury, and Afia Begum.

Sammilito Islami Bank was established by the previous interim government on Dec 21, 2024, by merging five struggling private Shariah-based banks -- EXIM Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and SIBL.

Under the original ordinance, the shares of existing owners were declared void, and the government injected Tk 200 billion in capital to nationalise the mega-entity.

After the BNP-led government took office, the ordinance was turned into an act with the addition of Section 18(A).

The clause created an opening for former directors -- many of whom presided over the banks during periods of massive loan defaults and money laundering -- to seek a return to the board.

BB spokesperson and Executive Director Arief Hossain Khan did not confirm the status of the specific application.

"Once the application reaches the relevant department, it will be reviewed according to the law. It is too early to comment on the matter," he said.

In their proposal, the former directors outlined a strategy to restore SIBL’s financial health if it is allowed to operate independently again.

The plan highlights several key measures.

It includes a request for Tk 110 billion in liquidity support from the central bank for 10 years at the prevailing bank rate.

It also promises fresh capital infusion to stabilise operations and improve governance.

The plan commits to reducing the non-performing loan ratio to 25 per cent by December 2026.

Finally, it aims to reactivate 22 dormant government accounts to recover around Tk 5 billion in funds.

The five banks were declared "dysfunctional" by the central bank on Nov 5, 2025, leading to the suspension of their shares on the stock exchange.

Sammilito Islami Bank is currently being managed by a government-appointed administrator as the merger transition continues.​

 

[Saif]

Removing trust-deficit in banking sector

The Bank Resolution Ordinance, 2025 was issued on May 9 last year (2025) by the Dr Yunus-led interim government with the objective of restoring stability in banking sector that was teetering on the brink of collapse. The ordinance granted the central bank, Bangladesh Bank (BB), under a new go

thefinancialexpress.com.bd

Removing trust-deficit in banking sector

SYED FATTAHUL ALIM

Published :
Apr 28, 2026 01:02
Updated :
Apr 28, 2026 01:02

The Bank Resolution Ordinance, 2025 was issued on May 9 last year (2025) by the Dr Yunus-led interim government with the objective of restoring stability in banking sector that was teetering on the brink of collapse. The ordinance granted the central bank, Bangladesh Bank (BB), under a new governor, the powers to manage the failing banks. The aim was to reorganise, merge or restructure weak banks, especially those with significant capital shortfall.

Notably, FSIBL, along with several other Shariah-based banks, was under the control of the infamous S Alam Group through pseudo shareholders and was subjected to serious irregularities including massive undocumented loans and money laundering leading to its as well as other distressed banks' ultimate collapse. Under the ordinance in question, the Bank Resolution Department (BRD) could take over the distressed or failing banks. Similarly, directors responsible for financial irregularities of the failing banks or their owners could be removed. But the Bank Resolution Act, 2026 that was passed by the Jatiya Sangsad (JS) on April 10, 2026, by amending the relevant ordinance would allow former owners and directors of the distressed/merged banks to reclaim control by paying only 7.5 per cent upfront of the government-injected funds!

In fact, the Section 18 (a) of the Act allows shareholders of the merged weak banks to regain ownership without accountability. This Act, especially its Section 18 (a), might allow those who previously looted the (banking) sector in a planned manner to regain ownership, speakers expressed their fear at a roundtable organised on Saturday (April 25) by a citizens' platform styled, 'Voice for Reform' at Karwan Bazar in the city. Experts and others concerned told the discussion event that by, what they said, intentionally adding a new clause, which was not in the original draft of the Act in question, the very purpose of the law that was originally framed has been altered. As a consequence, it has again put the country's entire banking sector at risk, economists, academics and political activists at the roundtable, added.

The Transparency International Bangladesh (TIB), through its press release on April 13, was also equally critical of the Bank Resolution Act, 2026, particularly, of its inclusion of a provision.

It opined that instead of addressing long-standing mismanagement, irregularities and governance deficits in the baking sector, with the inclusion of the Section 18 (a) in the Bank Resolution Act, 2026, the government guarantees impunity instead of ensuring justice for those concerned.

In fact, it is a normal practice under a democracy that the merit of the amended Bank Resolution Act, 2026 would come under the scrutiny of experts and other stakeholders as well. So, the incumbent government, that has been elected through a massive popular verdict, should not only appreciate criticism, but also amend or alter its decisions and actions by accepting the constructive aspects of such criticisms, if any, even if those are harsh. The denial mode, as was the characteristic of the past political government, should be avoided at all costs. There is no question that the banking sector needs a radical reform. Especially, the common depositors of the banks want to see that those who, under bank owners'/directors' garb, made off with their life savings, are punished and their stolen money returned with compensation. Banks over the centuries have been built on the depositors' trust. So, those responsible for the breach of the public trust must be brought to justice. It is believed that the incumbent government has the necessary political will to hold those responsible for the banking sector's present predicament to account. If any existing law or new law come in its way need to be brought under scrutiny and, if necessary, changed.​