Former senior secretary Dr Mohammad Ayub Mia has been appointed as the chairman of Sammilito Islami Bank, following approval from Bangladesh Bank on Sunday.
The appointment comes after the central bank granted final approval to the newly formed Sammilito Islami Bank PLC, created through the merger of five financially weak banks. Bangladesh Bank confirmed that the newly licensed bank will begin full-scale operations within this week.
- The five institutions merged to form the new bank are:
First Security Islami Bank
Global Islami Bank
Social Islami Bank
Exim Bank
Union Bank
Bank officials have stated that these banks continued to struggle financially despite receiving repeated liquidity support. Their share prices fell significantly in the stock market, and the Net Asset Value (NAV) of most of the institutions had turned negative.
The consolidation aims to stabilize the troubled financial condition of these banks. Prior to this, Bangladesh Bank had given preliminary approval for the formation of Sammilito Islami Bank on November 9, following a proposal from the Ministry of Finance.
