Bangladesh Bank Governor Ahsan H Mansur has announced that the long-discussed merger of five private-sector Islamic banks is now at its final stage, assuring that the move will not result in any job losses.

He made the statement while speaking at a press conference held at the central bank's boardroom in Dhaka today.

The five banks set to be consolidated into a single entity within the next few months are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank.

"This merger has no connection with the upcoming elections," Mansur said responding to reporters' queries.

"It is an ongoing process. We hope the next government will continue to advance this process. However, we will not wait for the elections; the five Islamic banks will be merged within the next few months," he added.

He also noted that there was no reason for bank employees to worry. "No employee will lose their job in the process."

"If needed, some branches will be reorganised. For banks with a higher concentration of branches in urban areas, initiatives may be taken to relocate some branches to rural areas," he added.

Earlier, on 9 April, Governor Ahsan H Mansur told a banking conference that the country's Islamic banking sector would undergo a complete overhaul, with plans to merge smaller, struggling Islamic banks to form a larger one. 

He said, "There's one large Islamic bank and many small ones – several of which are in trouble. So, we are going to merge those and hopefully make two large Islamic banks...to compete with each other."

Recovery of laundered assets

Asked about the efforts to recover laundered assets, the governor said, "The process of recovering assets is a long-term and step-by-step procedure. It is not possible to recover these funds without a final court verdict."

He said, "First, we must gather concrete evidence and prepare the necessary legal documentation. Then, we want the court to verify whether our claims are valid." 

"Action to recover funds can only be taken based on court decisions," he added.

Mansur also mentioned the Alternative Dispute Resolution (ADR) process, saying there is also an option to recover funds through settlements outside of court.

"This method requires following a specific process where legal representatives from both sides work toward a resolution," he added.

He further stated that the decision on whether to pursue recovery through court or the ADR will be made by the interim government. 

Once instructed, the Bangladesh Bank will complete the necessary preparations and appoint legal counsel to proceed, he said.

The governor also mentioned that preparations are underway to conduct legal proceedings in domestic courts for the recovery of local assets and in relevant foreign courts for the recovery of overseas assets.