| (BSS) - Bangladesh Bank Governor Dr Ahsan H Mansur today said that there is a plan to merge the Islamic banks to form two large banks.
"There`s one large Islamic bank and many small ones - several of which are in trouble. So, we`re going to merge those and hopefully make two large Islamic banks...to compete with each other," he said while speaking at the 10th Annual Banking Conference 2025 organised by the Bangladesh Institute of Bank Management (BIBM) in the capital.
Mansur noted that there are regulatory gaps in the Islamic banking sector due to the absence of a dedicated Islamic banking law. He said efforts are underway to address these issues based on international standards.
The central bank Governor also noted that digital banking licences are being revised to promote small and nano-loans as part of the financial inclusion framework.
Regarding money laundering, he said that individuals who have laundered money abroad from Bangladesh would face serious consequences both at home and abroad.
He emphasised the central bank`s commitment to curbing money laundering and restoring integrity in the financial sector.
"A huge amount of money was laundered during the previous government`s tenure, particularly through the banking system. Bangladesh Bank is now taking multi-agency initiatives to recover these funds, and we`re leading this effort. This is both a legal and moral imperative for us," said Mansur.
"Such incidents will not be allowed to recur in the future. Even if the laundered money is not fully recovered, we will make the lives of those involved extremely difficult," he added.
The governor also stressed strong regulatory interventions, stating that if any bank`s board fails to operate in accordance with banking regulations, interventions would be made in the interest of depositors.
He noted that the central bank has already dissolved the boards of several underperforming banks and restructured them.
"We expect banks to establish proper governance on their own. If not, the central bank will step in for the sake of public interest. That message is loud and clear," he cautioned.
Regarding reforms, the governor highlighted significant changes in the Bank
Company (Amendment) Act 2023 to ensure improved governance, board
constitution, and the qualifications of board members through proper `fit and
proper` assessments, aligning with international best practices.
He also mentioned the need to empower Bangladesh Bank through amendments to
the Bangladesh Bank Order, ensuring autonomy and transparency in its
operations. "We want a single regulatory framework for both public and
private banks," he added.
Mansur also reaffirmed his commitment to building a stronger, more reputable
banking system. "As Governor of Bangladesh Bank, I am committed to making our
banking system stronger and more respected in the coming years,"
During the event, BIBM Director General Md Akhtaruzzaman presented the
keynote paper.
He highlighted the sector`s transformation over the past decade and the
challenges of digitalization. "We must ensure digitalisation does not leave
anyone behind. Financial inclusion remains a top priority," he said.
Akhtaruzzaman also put emphasis on the role of technology such as AI,
blockchain, and machine learning in transforming banking operations, risk
management, and customer experience.
He concluded by stressing the sector`s responsibility in embracing green
finance and supporting the country`s transition to a sustainable, climate-
resilient economy.
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