STAFF CORRESPONDENT

Bangladesh Bank plans to merge five troubled Islamic banks in what could be the country’s largest financial sector consolidation in recent memory. The formal merger process will begin in July and is expected to be completed by October 15, according to officials familiar with the plan.

Arief Hossain Khan, spokesperson for the central bank, confirmed that a meeting on the subject took place. “We heard that the agenda of the meeting was the merger,” he said, but declined to elaborate.

A high-level meeting was held yesterday at the central bank headquarters between Governor Ahsan H Mansur and the managing directors and chairmen of the five Islamic banks -- Social Islami Bank, Global Islami Bank, First Security Islami Bank, Union Bank, and EXIM Bank.

According to officials, five joint teams, comprising Bangladesh Bank representatives and qualified staff from each bank, will begin work on the integration process and continue over a three-and-a-half-month period. The banks will come under temporary government control after the merger process starts.

The current managing directors

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