Bangladesh Bank has decided to withdraw the administrators it appointed from the remaining four banks under United Islami Bank by 15 August, handing the bank’s entire management to the new leadership.
Central bank officials said the decision was taken after the new chairman and managing director (MD) of United Islami Bank took charge. The bank will now be run under a regular management structure.
Earlier, on 30 July, Bangladesh Bank withdrew the first administrator from EXIM Bank. Administrators will then be withdrawn in stages from Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank.
Bangladesh Bank executive director and spokesperson Arif Hossain Khan told the media that administrators had been appointed temporarily after United Islami Bank was formed. Their main task was to coordinate the merger of the five banks’ loans, deposits and information-technology systems.
He said the bank’s chairman and managing director had now taken charge. Having both an administrator and a managing director at the same institution could create administrative complications, so the decision was made to withdraw the administrators.
Central bank officials said administrators had been appointed to merge the operations of the five banks and hand over responsibility to the new management. Most of this work has already been completed, so responsibility for running the bank is now being handed over in stages to United Islami Bank’s new management.
However, the technical merger of the banks is not yet fully complete. Work is under way to integrate the five banks’ core banking software, IT systems and international transaction accounting systems.
For this reason, some operations are still being run under the names of the earlier banks. Once the technical merger is complete, the entire bank will operate under the name United Islami Bank.
Officials added that once a managing director takes charge, there is no longer any need to keep an administrator at the same institution, because a conflict of responsibilities between the two posts could create complications. That is why administrators are being withdrawn in phases.
Central bank officials said the first administrator was withdrawn from EXIM Bank because the new managing director will run the main operations from that bank’s office, so its handover was completed first. The remaining four banks will also come under United Islami Bank’s new management by 15 August.
বাংলায় মূল প্রতিবেদন পড়ুন · Read the original Bengali report