Bangladesh Bank has dissolved the boards of five Shariah-based private banks as part of a move to merge them into a single large Islamic bank.

The central bank has decided to combine First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank into one entity. The new bank will operate on commercial and professional grounds, according to sources.

Bangladesh Bank Governor Dr Ahsan H Mansur is expected to brief the media Wednesday afternoon to share details of the decision.

On 9 October, the Advisory Council of the interim government approved the proposal to merge the five troubled private banks, paving the way for a unified Shariah-based institution.

Two potential names have reportedly been proposed for the new bank — United Islamic Bank and Sammilito Islamic Bank.

Four of the banks were previously owned by the S Alam Group, while the other belonged to business leader Nazrul Islam Mazumder.

Due to alleged fund mismanagement and unauthorised transfers during the Awami League government’s tenure, these banks faced severe financial distress, prompting the central bank’s intervention.