Five merged Islamic banks have filed 10,000 cases to recover defaulted loans, seeking to protect depositors’ interests and retrieve funds held up in the banking system. The information was presented on Thursday at a meeting between the Bangladesh Bank governor and the Bank Resolution Department, where progress on loan recovery and restructuring was reviewed. Bangladesh Bank assistant spokesperson Shahriar Siddiqui confirmed the details.

The banks are pursuing conventional legal action alongside negotiated alternatives, including an exit policy and alternative dispute resolution mechanisms, to speed up loan collection and settle disputes. A forensic audit into irregularities, corruption, loan fraud and misuse of assets during the banks’ previous ownership and management is in its final stage, with the aim of identifying those involved.

Bangladesh Bank said the combined Islamic bank has reconstituted its board with emphasis on independent directors and appointed a chief executive officer on July 16. Integration work covers about 16,000 employees, technology systems and a common interface allowing depositors to withdraw funds from any branch of the five banks. Consolidation and restructuring of 780 branches and 1,500 business units are continuing.