The launch of Sammilito Islami Bank marks a critical turning point for Bangladesh’s troubled banking sector. After months of frozen accounts, uncertainty and public anxiety, the resumption of normal banking operations under a single, consolidated Islamic bank has offered long-awaited relief to depositors. Early transaction data presented by Bangladesh Bank Governor Ahsan H. Mansur—showing no excessive withdrawal pressure and even fresh deposits—suggests that public confidence, though still fragile, is gradually returning.
This confidence must now be protected through action, not assurances. The merger of five distressed Islamic banks—EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank and Union Bank—was completed with unprecedented speed. While the central bank deserves credit for steering this complex process, the real challenge begins now: ensuring that Sammilito Islami Bank does not repeat the failures that crippled its predecessors.
At the heart of this challenge lies professionalism. The new bank’s directors and staff must demonstrate a level of efficiency, integrity and discipline that clearly sets them apart from the past. Banking decisions—particularly loan approvals—must be guided strictly by merit, risk assessment and commercial viability. Political identity, family connections or informal influence cannot be allowed to shape outcomes. The banking sector was badly damaged when loans were granted on the basis of power and proximity rather than sound business judgment.
The central bank’s commitment to forensic audits of the five merged banks is therefore a crucial step. Such scrutiny is not about revenge; it is about restoring institutional credibility. Corruption in banking rarely occurs without internal compromise. When staff adhere strictly to rules and regulations, large-scale loan irregularities become nearly impossible. Identifying those who violated procedures, ignored red flags or facilitated abuse is essential to ensure that accountability is real, not symbolic.
At the same time, accountability must be fair and targeted. The Governor’s assurance that employees will not be dismissed indiscriminately is sensible. Many staff members may have worked under political pressure or flawed leadership. However, those proven to be involved in financial misconduct must face consequences without exception. Selective justice would only deepen public distrust and weaken the reform effort.
System integration presents another major test. Unifying the technological platforms, internal controls and risk management systems of five separate banks is a demanding task. Any disruption or mismanagement during this phase could quickly undermine depositor confidence. While Bangladesh Bank’s technical support is vital, Sammilito Islami Bank must ultimately build a strong, modern institutional framework capable of operating independently and responsibly.
Beyond its immediate operations, Sammilito Islami Bank carries broader significance. Its success—or failure—will shape public perception of whether meaningful reform is possible in a banking sector damaged by years of misgovernance and political interference. A well-run Sammilito Islami Bank could become a model for restoring discipline and trust. A poorly governed one would reinforce fears that structural problems remain unresolved.
The path forward is clear. To justify public confidence, Sammilito Islami Bank must enforce discipline, uphold transparency and apply rules without fear or favour. Only by doing so can it help rebuild a banking system that serves the economy and depositors—rather than vested interests—and mark a genuine break from the failures of the past.
