Depositors of merged Shariah banks protest at BB for funds
Depositors of five merged Islamic banks staged a demonstration in front of the headquarters of Bangladesh Bank today, demanding the return of their deposits and the cancellation of a proposed “haircut” on their funds.
The protest began around 10:00am when depositors gathered at the central bank’s main gate and formed a human chain, chanting slogans in support of their three-point demands. Law enforcement agencies took positions in front of the premises to maintain order.
For all latest news, follow The Daily Star's Google News channel. The term “haircut on deposits” refers to a reduction in the value of a bank deposit in situations of a severe banking crisis or debt restructuring.
Speakers at the programme alleged that a decision taken during the tenure of a former governor of the central bank reduced depositors’ returns by cutting the profit accrued over the past two years on deposits held with the five Shariah-based banks.
Instead, depositors would receive only a 4 percent government concession, a move they described as “inhumane and unfair.”
They said many depositors had been unable to withdraw either their principal or profit from the banks for the past two years, pushing numerous families into financial hardship.
The protesters demanded the cancellation of the haircut decision and the full repayment of deposits, along with the contractual profits for 2024 and 2025.
They also called for the restoration of normal banking transactions at the merged Islamic banks, similar to those available at other scheduled banks.
The protestors warned that they would escalate their movement if their demands were not met, and announced a programme to lay siege to the central bank headquarters on March 12.
In January, the central bank sent a letter to each of the five merging banks — First Security Islami, Social Islami, Union, Global Islami, and EXIM — saying that deposit balances would be recalculated based on their position as of December 28, 2025.
No profit would be considered on deposits for the period from January 1, 2024, to December 28, 2025, according to the letter.
The banking regulator also said that a haircut on deposits would be applied in accordance with the approved decision, and the final balances of depositors would be determined after completion of the recalculation.
Banshal resident Din Islam, who joined the protest, said the haircut decision must be withdrawn and normal banking transactions restored.
“Otherwise, we will not leave this place,” he said.
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