Banking Sector Shaken by Five-Bank Merger Announcement

At the Dilkusha branch of First Security Islami Bank in Dhaka, customer Aminur Rahman expressed his frustration. “Earlier, they used to give small amounts daily, but now it has completely stopped. Customers are being sent away with a maximum of just 3,000 taka. I can’t even withdraw my own money—who do I tell this pain to?” His voice shook with anger. “What will I do with only 3,000 taka when I need lakhs? It doesn’t meet my needs.”

Unbeknownst to him, Bangladesh Bank had just finalized the decision a day earlier to merge this bank with others.

The same situation prevails at Union Bank’s Hatkhola branch. While the branch manager was absent, another officer admitted that due to the central bank’s suspension of support, no money has been returned to customers for over a month. Every day, 20–30 customers return empty-handed. Even staff are unable to withdraw their salaries at month’s end.

At Global Islami Bank’s Motijheel branch, an official lamented, “After Bangladesh Bank stopped support, we are completely stuck. Customers line up daily, hurling insults and abuse.” Speaking emotionally, he added that this crisis extends beyond Dhaka to the entire country.

For many customers, the suffering has turned into a humanitarian disaster. Unable to withdraw savings for medical bills, children’s school fees, or urgent business needs, they are drowning in debt. In some branches, arguments and even physical altercations have erupted.

The situation is so dire that schoolteacher Abdul Kader has gone to Union Bank 18 times, yet could not withdraw a single taka from his 1.27 lakh deposit. Saddam Hossain has been making rounds for weeks at First Security Islami Bank but has not received a single taka.

Economists argue that ordinary depositors are paying the price for widespread looting, irregularities, and poor management during the Awami League government’s tenure. The central bank had earlier dissolved 14 boards and injected nearly Tk 52,000 crore in liquidity support by printing new money, but the crisis persists. Large depositors still cannot recover even a fraction of their funds.

According to Bangladesh Bank data, the five banks slated for merger hold deposits worth Tk 147,368 crore and loans totaling Tk 190,484 crore. Of this, Tk 146,918 crore are non-performing loans, a staggering 77% of total disbursed loans. Capital shortfall stands at Tk 45,203 crore. The banks collectively serve 9.2 million customers and employ over 15,000 staff.

Economic adviser Dr. Salehuddin Ahmed observed, “Eighty percent of the banking sector’s money has been looted. Reviving the sector will require $35 billion.”

Regulators maintain that the problems are being addressed step by step. However, analysts warn that corruption, political interference, and the lengthy merger process will make it difficult to restore public confidence quickly.

Bangladesh Bank’s Executive Director and spokesperson, Arif Hossain Khan, reassured: “There is no reason to panic. The central bank is working to ensure maximum protection of depositors’ funds. Through the merger process, no bank is being shut down. Since the ownership will temporarily transfer to the state, the government itself will guarantee the safety of deposits. So, depositors need not lose hope.”