BB decides to license Sammilito Islami Bank

The Bangladesh Bank (BB) has decided to issue a licence to the widely-discussed Sammilito Islami Bank, being formed through the merger of five financially-troubled Islamic banks.

The decision was made at a special board meeting of the central bank held on Sunday at its headquarters in the capital's Motijheel.

With the licence, the new Shariah-based bank will emerge as the largest commercial bank in terms of paid-up capital (Tk 350 billion) in Bangladesh.

Before approving the licence, the government on Sunday deposited its paid-up capital portion of Tk 200 billion in the bank's current account with the banking regulator, according to sources.

The nine-member central bank board also approved former government secretary Dr Mohammad Ayub Miah as the chairman of the recently-formed seven-member board of the new bank.

Sammilito Islami Bank is expected to officially start its operations this week as all formalities have been completed.

The final approval of the central bank came within 21 days after the regulator issued the letter of intent.

Seeking anonymity, a central bank official said the BB board members had decided to issue the licence to protect the depositors of the five merged banks - Social Islami Bank, Global Islami Bank, First Security Islami Bank, Union Bank, and EXIM Bank. He said the central bank was likely to issue the licence on Monday (today), and the bank would officially start its operations this week.

"The bank also got name clearance from the Registrar of Joint Stock Companies and Firms on Sunday," he added.

A press statement issued after the central bank board meeting said the new bank would start its journey as the largest state-operated bank and also the largest Islamic bank in terms of paid-up capital.

The regulator firmly believes it will reassure the depositors about the security of their deposits.

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