# Government Implements Ban on Controversial Owners Returning to Five Islamic Banks

*The government has decided to bar controversial owners from returning to five Islamic banks.*

June 13, 2026 · business

## At a glance

- Government decides to bar controversial owners from returning to five Islamic banks.
- Combined bad loans of these banks amount to approximately 1.47 trillion taka.
- World Bank has expressed objections to the controversial clause in the Bank Resolution Act.

The government has decided to bar controversial owners from returning to five Islamic banks. The decision comes after the Bank Resolution Act allowed previous shareholders to reclaim their stakes. The combined bad loans of these banks amount to approximately 1.47 trillion taka, representing about 79% of their total loans. The World Bank has expressed objections to the controversial clause.

The decision to bar controversial owners is a response to criticism and objections from the World Bank. The government aims to enhance the capacity of Bangladesh Bank, reduce bad loans, and reform the financial sector. The World Bank has emphasized the need for a strong and adequately capitalized banking sector, financial sector stability, and private sector-driven employment creation in Bangladesh.

The five banks—Exim, Social Islami, First Security Islami, Union, and Global Islami—were merged into a single entity, the Combined Islami Bank, on December 2, 2025. The combined bad loans of these banks amount to approximately 1.47 trillion taka, representing about 79% of their total loans. Union Bank has the highest bad loan ratio at 98%, followed by First Security Islami at 96%, Global Islami at 95%, Social Islami at 62%, and Exim Bank at 48%.

The decision to bar controversial owners is still at the policy level. The government will initiate the process once a formal decision is made. The cancellation of the controversial clause will require an amendment to the law, which may be presented in the upcoming budget session of the Jatiya Sangsad.

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Source: https://pulsetoday.com.bd/en/business/govt-bars-controversial-owners-from-returning-to-5-islamic-banks