BB identifies 10 fragile banks, but names undisclosed

Bangladesh Bank (BB) has identified 10 fragile banks in an effort to establish good governance in the banking sector.

However, central bank governor Abdur Rouf Talukder didn’t mention the names of these banks.

The BB will hold separate meetings with them to solve their problems.

The governor came up with this disclosure on Thursday at a press briefing at the Jahangir Alam conference room of the central bank in presence of four deputy governors.

The chief economist of Bangladesh Bank Habibur Rahman presented a keynote paper at the event.

Relatively 10 weak banks were identified in this phase based on four variables, including classified loan limit, capital adequacy, credit to deposit ratio and the quantity of provision.

The keynote paper said Bangladesh Bank is going to hold a one-to-one meeting with all weak banks to solve their problems. The banks will be asked to submit a three-year long business plan to the central bank. Following that, a high official of Bangladesh Bank will examine the progress of each bank.

When asked, the governor said, “It is better to hide the names [of those banks]. If a bank is fragile, it affects others. We are not in favour of closing any bank. We want to ensure that the money of depositors will remain safe. We want all banks to run business, make profit and sustain in the market.”