What Bangladesh Bank said about bank merger

Bangladesh Bank has taken initiative to restore good governance in the banking sector which is in crisis. The central bank has said that various types of news have been published in several media about the bank merger, which in many cases are not based on real facts. As a result, confusion has arisen in the public mind about bank mergers.

Bangladesh Bank’s Department of Communication and Publication (DCP) informed this information in a circular on Tuesday (April 23).

According to the notification, various types of news have been published in various electronic, print and social media regarding the bank merger, which in many cases are not based on factual information. As a result, confusion is being created in the public mind about bank merger.

Bangladesh Bank is working on ‘Bank Consolidation’ mainly with two objectives-

1. Bangladesh will be established as a developing economy country in 2026. As a result, more capable banks and financial institutions will be needed in the country to provide effective banking services in the developing economy so that there is no hindrance in the investment in economic development.

2. Strengthening the financial sector by solving the existing problems of relatively weak banks and at the same time developing the activities of relatively strong banks; So that the merged bank-company can provide more services in public interest. To remove the confusion created in the public mind, Bangladesh Bank informs everyone about the purpose and results of bank merger that,

a) Deposits of individual and institutional depositors in the banks undergoing merger process will be completely safe and secure. Even after the completion of the merger, the current account of the account holders of respective banks will continue as before.

b) The merger process will be completed based on the consent of the entrepreneurial directors, current boards and common shareholders of the banks covered by the merger.

c) All the activities of the merger will be carried out following the policy described in BRPD Circular No. 8 issued by Bangladesh Bank on April 4.