¶¶Òõ¾«Æ·

Bangladesh Bank governor Ahsan H Mansur on Wednesday said that there was a plan to merge 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 in the capital.

Mansur noted that there were regulatory gaps in the Islamic banking sector due to the absence of a dedicated Islamic banking law. He said that efforts were underway to address these issues based on international standards.

The central bank governor also noted that digital banking licences were being revised to promote small and nano-loans as part of the financial inclusion framework.

Regarding money laundering, he said that individuals who had 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. The 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 had 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 the 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 expected 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 digitalisation. ‘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.