Five Shariah banks undergoing a merger are facing a massive collective liability of approximately Tk 37,332 crore in fixed deposits owed to various banks and financial institutions, according to a report of the Bangladesh Bank released on Tuesday.
The report studied the state of the five banks.
Of them, the highest liability of Tk 10,185 crore lies with First Security Islami Bank, while Union Bank has a liability of Tk 8,631 crore. The Exim Bank has a liability of Tk 8,157 crore, followed by the Social Islami Bank with a liability of Tk 5,791 crore and the Global Islami Bank with Tk 4,568 crore.
In addition to the five banks, the Padma Bank is also reportedly failing to return deposits, contributing to a broader liquidity crisis.
BB to appoint administrators for merger of five troubled Islami banks
Arif Hossain Khan, executive director and spokesperson for the BB, told UNB, "Where an institution places its money is its own business policy. The main problem here is corruption, not a lack of policy. These issues will not be resolved unless corruption is stopped.”
Bangladesh Bank’s (BB) latest report exposes the fragile state of the banking sector.