Bangladesh Bank will focus on five merger or amalgamation proposals it has already received and not accept any other proposals for the time.
The government should come up with a clear guideline complying with the global best practices before compelling banks to merge, the World Bank has said.
Initially, it is the general stock investors who might be at the receiving end of the process while the loan defaulters, whose misdeeds are largely responsible for Padma Bank’s current misfortunes, might come out victorious.
Both banks are weak as per a Bangladesh Bank health index of banks and it is very difficult to get any positive result by merging two weak banks, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.
The news that Shariah-based Exim Bank is going to merge with troubled commercial lender Padma Bank has taken the financial sector of Bangladesh by surprise.
Bangladesh Bank yesterday said it would take the initiative for the mergers and acquisition of banks from March 2025 if they fail to do so voluntarily by December this year.
Bangladesh Bank is planning to initiate mergers and acquisitions among weak non-bank financial institutions (NBFIs) if a similar initiative in the banking industry sees success.
Bangladesh Bank Governor Abdur Rouf Talukder has formally informed the owners of banks that weak lenders will be merged with stronger ones in a year and the banking regulator has got down to working towards it.
Bangladesh Bank will focus on five merger or amalgamation proposals it has already received and not accept any other proposals for the time.
The government should come up with a clear guideline complying with the global best practices before compelling banks to merge, the World Bank has said.
Initially, it is the general stock investors who might be at the receiving end of the process while the loan defaulters, whose misdeeds are largely responsible for Padma Bank’s current misfortunes, might come out victorious.
Both banks are weak as per a Bangladesh Bank health index of banks and it is very difficult to get any positive result by merging two weak banks, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.
The news that Shariah-based Exim Bank is going to merge with troubled commercial lender Padma Bank has taken the financial sector of Bangladesh by surprise.
Bangladesh Bank yesterday said it would take the initiative for the mergers and acquisition of banks from March 2025 if they fail to do so voluntarily by December this year.
Bangladesh Bank is planning to initiate mergers and acquisitions among weak non-bank financial institutions (NBFIs) if a similar initiative in the banking industry sees success.
Bangladesh Bank Governor Abdur Rouf Talukder has formally informed the owners of banks that weak lenders will be merged with stronger ones in a year and the banking regulator has got down to working towards it.