Banks can merge voluntarily till Dec: BB
Staff Reporter :
Bangladesh Bank (BB) confirmed yesterday that if any bank willfully merged with another , there will be no loss to the interest of its depositors.
The regulatory body also offered that banks can voluntarily merge until December this year. By the March next year, decision will be taken on forced merger by the central bank for those who will fall in the vulnerable bank’s list as per the policy following the international practice of method and process of bank merger.
Speaking at a press briefing on Tuesday The central bank’s Executive Director and spokesperson Mezbaul Haque revealed those information.
“We developed a Prompt Corrective Action (PCA) Framework for commercial banks to classify banks. Under the framework banks will be evaluated in four categories. This will be done based on the balance sheet of 2024 and will be implemented from May 2025.”
The BB spokesperson mentioned that the regulator is planning to merge 10 banks within a year. Following the merger, Mezbaul said, “The weak bank can become the strong bank while strong banks can be stronger banks.”
Regarding the recent news in various media on weak and strong banks in various media, Mezbaul, told reporters “Not all our reports are for the public.
We have to keep some undisclosed for the national interest. The CAMELS ratings on our banks are never meant to be public”
Earlier on Monday and Tuesday several media outlets published reports on the latest edition of the “Banks Health Index and HEAT Map”, a biennial report prepared by the Financial Stability Department of the central bank.
The list identified 38 banks, including six state-owned banks, as weak lenders out of the 54 analyzed, as per the central bank’s report.
The recent central bank list identifying the country’s weak and strong banks has been prepared for research purposes and not for publishing in the media, Bangladesh Bank spokesperson added.
Mezbaul Haque also said, “Our various departments assess various components regularly for financial risk management. But it is not a real health indicator.
