The Finance Ministry has recommended releasing Tk 20,000 crore in capital to establish a new state-owned Shariah-based bank named Sommilito Islami Bank. The Financial Institutions Division has sent a request to the Finance Division to disburse the funds once the new bank opens its account with Bangladesh Bank.

Fresh Institution Under Government Ownership
According to official communication, Sommilito Islami Bank has received preliminary approval and will be registered as a state-owned Islamic bank before receiving its final operating licence.
This initiative comes at a time when five Shariah-based banks—First Security Islami Bank, Global Islami Bank, Union Bank, EXIM Bank and Social Islami Bank—have been declared financially stressed and placed under regulatory supervision. Earlier discussions had considered merging these five institutions under a single umbrella, but the current plan centers on forming a new bank with government capital.

Depositor Withdrawals to Follow Phased Approach
Authorities have indicated that protecting depositors remains the primary objective during the transition. Under the current framework, depositors of the five institutions may initially be allowed to withdraw up to Tk 200,000, with further instructions to be issued as the restructuring progresses. A phased repayment schedule is expected for larger deposit amounts.

Shareholder Losses and Market Reaction
Financial assessments have shown that the five banks carry significant accumulated losses. In regulatory briefings, officials have noted that the negative net asset positions leave limited scope for shareholder recovery.
Trading of these banks’ shares was suspended on the Dhaka Stock Exchange, leading to concern among retail investors. There were also small protest gatherings as investors reacted to the possibility that their holdings may not retain value. The situation has heightened discussions around investor safeguards during bank resolution actions.

Board Formed for New Bank
A seven-member board has been set up for Sommilito Islami Bank. Plans include appointing an equal number of independent directors with backgrounds in banking, accounting and law. Recruitment of senior management, including the managing director, will be overseen by a search committee. The bank is expected to operate under professional management once fully launched.