Deposits safe in banks being merged: BB

Money deposited by individuals and institutions with banks, which have decided to go for mergers, will remain completely safe and secure, Bangladesh Bank said in a statement yesterday.

The assurance came about amidst the depositors rushing to the bank branches to withdraw their funds over apprehensions centring the mergers.

The accountholders of the banks will be able to continue to maintain their respective accounts after the mergers, the central bank said in the statement sent to the media.

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Moreover, the merger process will be completed with the consent of the sponsor directors, boards of directors and general shareholders of the banks, it said.

All associated activities will be carried out following the guidelines for merger or amalgamation of banks and non-bank financial institutions issued on April 4, it added.

The banking regulator is working on merging or amalgamating banks bearing unsustainable levels of non-performing loans with lenders having good performance records to deliver more services in the interest of the public, said the BB.

The central bank also aims to strengthen the financial sector and ensure unhindered economic development through effective banking services of capable banks and financial institutions, it said.

As per the government's recent plans, state-run Sonali Bank will be merged with Bangladesh Development Bank and Bangladesh Krishi Bank with Rajshahi Krishi Unnayan Bank.

Besides, private commercial City Bank will be merged with state-run BASIC Bank, United Commercial Bank with National Bank and Shariah-based EXIM Bank with scam-hit Padma Bank.