What the governor said about the bank merger
September 24, 20242 Mins Read

Jumbangla Desk: Small banks may be merged. However, the decision will be taken in the light of the situation, said the governor of Bangladesh Bank. Ahsan H. Mansoor.

Governor Dr. Ahsan H. Mansoor

He said this while talking to journalists on the contemporary issues of the banking sector at the head office of Bangladesh Bank in Motijheel on Monday (September 23).

The governor said that the money that went out anonymously will be analyzed through the task force. Smaller banks may be consolidated.

However, the governor said that the decision to merge the bank will be taken in the light of the situation. He said that the most emphasis is being given to bring stability to the macro economy. For this reason, Bangladesh Bank is working to control inflation and stabilize the exchange rate.

Earlier, in April this year, Bangladesh Bank issued regulations regarding bank mergers. Banks in weak (bad condition) will be compulsorily merged if they are not merged on their own in the light of central bank policy. Prior to this, 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 under the PCA framework due to capital and liquidity deficits, non-performing loans, good governance deficiencies and activities harmful to depositors, the respective banks 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 and orderly manner.