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BB to develop policy to merge banks

by The Bangla Herald

Bangladesh Bank (BB) will develop a policy to merge banks to ensure the best financial governance.

The information was revealed today at a meeting between BB Governor Abdur Rouf Talukder and a team of the Bangladesh Association of Banks (BAB), led by its Chairman Nazrul Islam Mazumder, at the central bank headquarters in the city.

After the meeting, BB Executive Director and Spokesperson Mezbaul Haque said, “We decided to merge banks for the wellbeing of the banking sector if needed. After reviewing the overall issue, we will develop a policy.”

He said the government will be able to identify weak banks by March next year.

“After that, a decision will be taken over which banks need to be merged. Then the process will start in light of the policies made considering the overall issues,” he added.

He also said, “We have examples from different countries… In most cases, banks were merged through the owners’ own initiative. In some cases, the regulatory body decides. We also want the owners to decide. We will decide if the need arises.”

Nazrul Islam Mazumder said considering various examples of banks merging in different countries, BAB will accept the move in the national interest.

“We will accept the decision of the central bank in the national interest,” he added.

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