The interim government has approved the merger of five financially struggling Shariah-based private banks to form a single new bank. The banks involved in this merger are First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank, and Social Islami Bank. The merged entity will initially have an authorised capital of Tk 400 billion, with paid-up capital estimated at Tk 350 billion. As part of the initial plan, Tk 150 billion in institutional deposits will be converted into capital through a "bail-in" process. On Sept 16, the Bangladesh Bank’s board approved the “Resolution Plan Scheme 2025” for the merger, which was subsequently endorsed by the Advisory Council.
