Central bank announces first bank merger policy

The central bank has decided that weak banks could merge with strong ones. As part of this, a decision has been made in the meeting of the managing directors of the banks with the governor of Bangladesh Bank regarding the merger of six state-owned banks.

Bangladesh Bank (BB) issued a policy in this regard on Thursday (April 4).

The board of directors of the banks have been asked to call a meeting soon to take a decision regarding the merger.

Concerned sources said that Bangladesh Development Bank Limited (BDBL) is set to merge with Sonali Bank, while Rajshahi Krishi Unnayan Bank (RAKUB) will be taken over by Bangladesh Krishi Bank (BKB) as part of disciplining the banking sector. The move follows the merger of private sector Padma Bank with Exim Bank.

Central bank executive director and spokesperson Md Mezbaul Haque said that a series of meetings are being held in Bangladesh Bank to merge weak banks with strong ones. However, when any bank will be merged will be officially informed.