DHAKA, Dec 30, 2025 (BSS) - In a major move to restore stability in the financial sector, Bangladesh Bank (BB) today issued a notification for the "Bank Resolution Scheme 2025," merging five Islamic banks into a single entity named Shommilito Islami Bank PLC.  The decision follows chronic governance failures, financial irregularities, and asset losses within Exim Bank, First Security Islami Bank, Global Islami Bank, Social Islami Bank, and Union Bank.  Despite receiving significant liquidity support from the central bank over the past year, these institutions failed to show the expected financial improvement.  To protect depositor interests, administrators were appointed to these banks on November 5, 2025, leading to this final resolution.  The newly formed Shommilito Islami Bank PLC has been established with an authorized capital of Taka 40,000 crore and a paid-up capital of Taka 35,000 crore.  The capital breakdown is Taka 20,000 crore from Government contribution and the remaining Taka 15,000 crore will be raised by converting fixed and institutional deposits from other banks and financial companies into shares.  However, specific entities are exempt from this share conversion provision, including educational and religious institutions, hospitals, provident funds, joint ventures, multinational companies, and foreign embassies.  All assets, liabilities, and legal contracts of the five merged banks have now been transferred to Shommilito Islami Bank.  The central bank has also outlined specific measures to ensure a smooth transition for customers.  Under the measures, depositors can initially withdraw up to Taka 2 lakh, which is secured by the Deposit Insurance Trust Fund. Any balance remaining in accounts will earn market-based profits. All existing checkbooks, deposit slips, withdrawal forms, and other banking documents issued by the five original banks will remain legally valid and will be treated as authorized documents of the new bank.  Fixed Deposits cannot be encashed before their scheduled maturity date and customers can avail of investment facilities up to 20% against their existing balances and up to 80% against new deposits. The scheme ensures that all officers and employees of the five banks who do not have pending complaints or lawsuits will be transferred to Shommilito Islami Bank. While the new board of directors, with central bank approval, may redefine service terms, employees also have the option to resign in writing if they do not wish to join the new entity.  Bangladesh Bank emphasized that this resolution is a proactive reform aimed at rebuilding public confidence in the banking system.  The central bank will directly supervise the transition, prioritizing risk management, transparency, and accountability.  Officials believed that protecting depositor funds and establishing financial discipline will lead to significant progress in the overall stability of the nation's financial sector.