Dhaka, May 8 -- Returning the five merged Islamic banks to their former shareholders might prove difficult for the government as major development partners dislike the reversion move, officials says.

The new government last month passed the Bank Resolution Act 2026 amending the Bank Resolution Ordinance 2025 under which the post-uprising interim government had taken step for merging five troubled shariah-based banks.

However, while passing the act in parliament, the Ministry of Finance interpolated a provision which paved the way for the former owners to regain control of the five banks by paying the money injected by the government on very easy terms.

The government action drew strong criticism from cross section of people, including ...