Dhaka, Nov. 6 -- Bangladesh Bank has confirmed that general shareholders will not benefit from the merger of five troubled Shariah-based private banks.

In a statement on Thursday, the central bank said there is currently no provision to protect the interests of general investors in the consolidation, though the government may consider compensation for small shareholders.

Governor Ahsan H Mansur announced on Wednesday that all shares of Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank would be declared "zero" as the merger process begins.

The central bank declared the banks "ineffective", dissolved their boards, forced management resignations, and appointed administrators to manage the proces...