# State-owned BASIC Bank has objected to merger with the private City Bank
# Rajshahi Krishi Unnayan Bank also formed a human chain against it
# Bankers as well as depositors are worried as many withdrawing deposits
Now there is a kind of panic in the banking sector. No one knows when a bank will merge with whom. However, the central bank said that no bank will be merged except the five banks for now. In such a situation, there are various worries among the bankers as well as depositors. Some are withdrawing deposits from banks out of fear.
Meanwhile, the state-owned BASIC Bank has objected to merging with the private City Bank. The bank's officials and employees have submitted a memorandum to the Bangladesh Bank (BB) and the Ministry of Finance. Rajshahi Krishi Unnayan Bank also formed a human chain. The board meeting of BASIC Bank was held on last Wednesday afternoon. It has also been decided that BASIC Bank will not go under any private bank. A responsible source of BASIC Bank confirmed the matter.
Banking sector experts said merger of weak banks with strong banks alone will not be beneficial. It is necessary to punish the real criminals of the banking sector. Besides, there are many directors in the banking sector, in whose hands the bank is very unsafe. That is, they are in the role of predators by being protectors. As a result, strict action should be taken against them. Otherwise, confidence in the bank will never be restored.
Former BIBM director general Dr Moinul Islam said, "It was wrong to give license to so many banks. Again, the weak banks that are now being imposed on good banks, this is another wrong decision. The biggest problem in the banking sector is loan defaulters."
Syed Abu Naser Bakhtiar Ahmed, former managing director of Agrani Bank, said the merger is not right forcibly. Rather, it was necessary to merge the weak with the weak and the strong with the strong. But what is happening now can also weaken the strong bank. Besides, there should be professional people on the board of the bank. There should be a policy that only if the owner of the bank cannot be on the board. Because there are many directors in whose hands the bank is unsafe.
BB has so far decided to merge five public and private banks with five other banks. In fact, the burden of weak banks has been imposed on some strong banks. The process of merging the bank has started after giving a roadmap to restore good governance in the banking sector and reduce default loans. The central bank issued a policy on bank merger earlier this month, but before issuing the policy, it was decided to merge three banks and later two banks. According to the policy, the merger of banks at this stage is supposed to be voluntary; but there have been allegations that BB itself is not following this policy.
Besides, the World Bank said it needs to be more careful in merging banks. This process needs to be carried out in accordance with international norms. Banks should be merged on the basis of asset quality and specific policies. The bank is ready to assist Bangladesh in reforming the banking sector.
Meanwhile, in a discussion with the top executives of the bank on January 31, BB suggested the merger of the banks considered weak. Governor Abdur Rauf Talukder also advised the MDs of good and weak banks to start discussions among themselves. Similar instructions were given at a meeting with a delegation of Bank Entrepreneurs Association of Bangladesh (BAB) on March 4. In the meeting, the governor said that 7 to 10 weak banks may be merged with good banks within this year.
ZH
