Bangladesh Bank has announced that it will not approve any new bank mergers at the moment, except for the ones involving Padma, National, Basic, and Rajshahi Agricultural Development Bank. Central Bank Executive Director and Spokesperson Majbaul Haque confirmed this decision on Monday during a media interaction.
The move comes amid ongoing discussions about bank reforms and mergers. While some banks have already initiated merger processes, Bangladesh Bank has decided to hold off on any new mergers beyond the existing proposals involving ten banks.
Majbaul Haque explained that the current focus is on completing the merger processes for the ten banks covered by existing proposals. Once these mergers are finalized, the central bank will consider new merger proposals if necessary, drawing on the experience gained from the ongoing mergers.
He highlighted the complexity of bank mergers, which involve various legal processes such as appointing auditors, determining assets and liabilities, and setting share prices. The execution of these processes provides valuable experience for future mergers.
Typically, the entire process of merging two banks can take three to four years to complete. When asked about the banks involved in the existing proposals, Majbaul Haque mentioned Padma and Exim Bank, while the names of the other banks have been circulated in the media.
