Bangladesh Bank on Wednesday (November 5) has dissolved the boards of five Shariah-based banks set to be merged and appointed administrators to take charge. The administrators assumed their responsibilities the same day.

Speaking at a press conference in Dhaka, Governor Ahsan H Mansur announced that the central bank intervened after declaring the institutions “non-viable.” Formal letters were sent to the company secretaries of the banks today, instructing the new administrators to oversee operations during the transition.

According to the governor, the administrators’ immediate priorities include keeping the banks operational, monitoring their IT systems, managing the merger process, overseeing human resources, and rationalizing the number of branches.

Ahsan H Mansur added that the share prices of the banks involved had fallen into negative territory, between negative BDT 350 and negative BDT 420 per share. “The shareholders should have been fined,” he said. “Instead, we have nullified their ownership.”

He also noted that individuals accused of embezzlement at these banks are facing legal action from both the Anti-Corruption Commission (ACC) and other relevant agencies. To ensure continuous oversight, Bangladesh Bank has also formed a central monitoring committee for these five banks.

Earlier on October 9, the Advisory Council approved a proposal from the Ministry of Finance to establish a new bank by merging five Shariah-based Islami banks, according to an official statement.