Bangladesh Bank to withdraw administrators from five troubled banks in phases

Full control of each bank will pass to Sammilito Islami Bank

Bangladesh Bank has decided to withdraw administrators from five banks, in phases, as Sammilito Islami Bank prepares to launch commercial operations across them.

The decision was made at a meeting between Governor Mostaqur Rahman and Sammilito Islami Bank's board of directors on Monday.

The governor had earlier met with the administrators of the five banks on Sunday.

Mohammad Shahriar Siddiqui, the central bank’s assistant spokesperson told bdnews24.com that administrators would be withdrawn from all the banks in stages.

"Once an administrator is withdrawn from a bank, full control of that bank will pass to Sammilito Islami Bank," he said.

"Before that, factors such as the bank's financial position, operational liabilities and the restructuring process will also be reviewed."

A timeline for when full control of the five banks would pass to Sammilito Islami Bank has not yet been set.

To carry out the decision to withdraw administrators, the bank's board will hold separate meetings with the administrators of each of the five banks.

After assessing each bank's financial position, operational readiness and progress on restructuring, the board will determine which bank's responsibility will be taken over first.

Based on that assessment, Sammilito Islami Bank will inform Bangladesh Bank of the handover schedule.

The central bank will then relieve the administrator only of the bank whose responsibility is being handed over to the new board at that time, meaning the process will not happen across all five banks simultaneously.

At the meeting with the governor, administrators of the five banks presented the current state of their institutions, progress on restructuring and existing challenges through PowerPoint presentations.

Discussion of easing out the administrators began after a managing director was appointed at Sammilito Islami Bank.

The new bank, which began operations with an authorised capital of Tk 350 billion, has already received Tk 200 billion in capital support from the government.

The bank was formed under the previous interim government by merging five financially troubled Shariah-based private banks: Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank and Social Islami Bank.

Bangladesh Bank, the regulatory authority, issued the final licence in the name of Sammilito Islami Bank on Dec 1, 2025.

Md Abedur Rahman Sikder took charge as the bank's managing director on Jul 16.