Islamic banks may be merged to create two large banks: BB governor
Bangladesh Bank Governor Ahsan H Mansur said today that there is a plan to merge the Islamic banks to form two large banks.
Bangladesh's Islamic banking sector would be completely restructured, as most of the existing Islamic banks are currently in trouble, he said.
For all latest news, follow The Daily Star's Google News channel. The governor made the comments while inaugurating the two-day Annual Banking Conference 2025, organised by the Bangladesh Institute of Bank Management (BIBM) at its premises in Mirpur, Dhaka.
He also said the country lacks a proper regulatory framework for Islamic banking and that a legal gap remains in this regard. "We are working on that as well," he added.
The BB governor said efforts are underway in collaboration with foreign organisations to recover laundered money, adding that both legal and ethical steps must be taken in this regard.
"The lives of those who laundered money will be made difficult so that others are discouraged from doing the same in the future," he said.
Mansur pointed out the need for support from all relevant stakeholders to make the recovery efforts successful.
He also highlighted the importance of ensuring the central bank's autonomy.
"We know there has been a lot of interference and dual governance in the banking sector, and this needs to end. We need a unified regulatory framework for the entire banking system, and we are working towards that," he said.
Bangladesh Bank is also working to strengthen its supervisory capacity and regulatory framework so the central bank's functions can be significantly improved, he said.
"That way, we can detect irregularities without interfering in the banks' day-to-day operations."
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