Bangladesh Bank has withdrawn the requirement for maintaining provisions against funds stuck in five merged Shariah-based banks. The decision, announced on Thursday by the central bank’s relevant department, aims to ease financial pressure on the affected banks and institutions that have been unable to recover large sums for an extended period.

The merged banks are First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, and EXIM Bank. These institutions were consolidated into a unified Islamic banking structure due to severe liquidity crises. According to Bangladesh Bank sources, over Tk 15,000 crore from other banks and financial institutions remain stuck with these five banks, including more than Tk 8,000 crore belonging to one Islamic bank.

Officials explained that the funds are covered under a specific scheme, ensuring eventual recovery either through direct repayment, long-term fixed deposits, or share allocations. Industry observers noted that while the decision offers short-term relief, recovering the trapped funds remains a major long-term challenge.