Bangladesh Bank has stated that no other banks will be merged except Bangladesh Development Bank (BDBL), Rajshahi Agricultural Development Bank, Basic Bank, Padma Bank and National Bank.
On Monday (April 15), the spokesperson of Bangladesh Bank, Majbaul Haque, gave the information.
He said that Bangladesh Bank will work on the merger of Rajshahi Agricultural Development Bank, BDBL, BASIC, Padma and National Bank for the time being. Apart from these banks, no new banks will be merged for now. However, he also said that no such decision is being taken now whether any other bank will be merged or not.
It should be noted that after the announcement of the merger of Padma and Exim Bank, the names of dozens of public and private companies have appeared in the list. Analysts said that good governance cannot be restored in this sector by just merging weak banks. Action should be taken against the responsible managers also.
Meanwhile, Bangladesh Bank has issued policies related to bank mergers. Banks in weak (bad condition) will be compulsorily merged if they are not merged in the light of central bank policy. Before that, the agreement between the two banks should be signed. Then depositors, creditors and investors have to submit repayment plans. The central bank will find out the overall financial picture of the bank through external auditors. Finally, the merger must be filed with the court.
In this, if a bank falls within the ambit of the PCA framework due to capital and liquidity shortfalls, defaulted loans, good governance deficiencies and activities detrimental to depositors, the concerned bank will have to comply with the Central Bank's restrictions on recovery. Failure to implement the recovery plan will result in compulsory merger of the bank in the interests of the depositors. Bangladesh Bank issued this policy to be followed by the bank in order to complete the merger process in an orderly manner.