Dhaka, Jan. 15 -- hit Shariah-based banks in Bangladesh will have to forgo profits on their savings for two years as the central bank moves to stabilise the lenders ahead of a planned merger.

Bangladesh Bank has ordered a 'haircut' on profits accrued during 2024 and 2025, meaning depositors will not receive any returns for that period and will see their account balances reduced.

The directive follows what the regulator described as international resolution practices for distressed banks.

Institutional deposits to be converted into shares as Bangladesh Bank finalises 'Sammilito Islami Bank' merger

The decision was conveyed on Wednesday through letters sent to administrators of First Security Islami Bank, Global Islami Bank, Union Bank,...