The Bangladesh Bank (BB) has initiated the process of withdrawing administrators from the five merged Islamic banks to further accelerate the operations of the newborn Sammilito Islami Bank, starting with EXIM Bank.

A day after the decision of the central bank board of directors over the gradual withdrawal of the administrators appointed to oversee the five Shariah-based banks, the banking regulator on Thursday issued a letter, withdrawing the administrator and the accompanying management team from EXIM Bank.

Bangladesh Bank Executive Director and Spokesperson Arief Hossain Khan confirmed the development, saying the decision had been made to remove the administrator from EXIM Bank.

Earlier on July 20, the central bank decided that the management responsibility of the five merged Islamic banks -- EXIM, First Security Islami, Global Islami, Union, and Social Islami -- would be transferred to Sammilito Islami Bank, which was established during the tenure of the past interim government.

The EXIM Bank administrator's withdrawal marks the beginning of the central bank's plan to restore normal governance in the five banks.

The regulator aims to remove the administrators and their teams from the remaining four banks by August.

On July 20, Bangladesh Bank Governor Md Mostaqur Rahman held a meeting with the board members of Sammilito Islami Bank at the central bank headquarters in the capital.

A day earlier, he met the administrators of the five banks.

The meeting with the board was also attended by Abedur Rahman Sikder, the first managing director of the country's largest bank in terms of paid-up capital of Tk 350 billion.

To implement the transition, the board of Sammilito Islami Bank will hold separate meetings with the administrators of each of the five banks.

The board will assess the financial condition, operational readiness, and progress of restructuring before determining the sequence in which responsibility for each bank will be transferred.

Based on these evaluations, the newborn bank will submit a proposed handover schedule to the Bangladesh Bank.

The central bank will withdraw the administrator only after the management of a particular bank has been formally transferred to the new board.

As a result, administrators will not be removed from all five banks simultaneously.

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