No scope for National Bank to merge with Islamic banks, says Bangladesh Bank

Bangladesh Bank has said there is no possibility of the conventional National Bank merging with Islamic Shariah-based banks, shrugging off recent media reports suggesting otherwise.

On Friday, central bank spokesperson Arief Hossain Khan said some newspapers had reported, quoting the governor, that six weak banks would be merged under government ownership.

“The report is inaccurate,” he added. “National Bank follows conventional banking, with no scope for inclusion in the restructuring of Islamic banks.”

The reports emerged after Channel 24 aired a news segment on Monday, quoting the Bangladesh Bank chief as saying that several weak banks would be merged by July this year.

According to the channel, the list included Social Islami Bank Limited (SIBL), First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and National Bank.

After the report, the Bangladesh Bank chief was asked to specify which banks would be merged.

He said the process would follow the Bank Resolution Act but did not name any banks.

In Monday night’s report, Channel 24 also quoted the governor as saying that the interim government would take over these banks temporarily by July, provide the required capital, and then look for foreign investors.

He noted that Bangladesh Bank had already been extending liquidity support to those institutions.