Banks could merge on their own until December, depositors not to be harmed: BB
The interests of the depositors’ will not be harmed even if any bank merges with another one, said Bangladesh Bank Tuesday.
The regulatory body also said the banks could merge with other banks on their own until December this year. Then decisions will be taken about the banks who would be identified as weaker ones as per the policy in this regard in March next year.
Following the global practices, regulations would be composed on the method and process the banks will have to follow for merging, said the central bank’s spokesperson Mezbaul Haque at a media conference Tuesday.
The conference was convened as different speculations regarding the weaker banks and their merger with better faring ones have become widespread.
Speaking about a recent list drawn up by the Bangladesh Bank of the banks categorising them in red, yellow and green, Mezbaul Haque said that was based on perceptions
Mezbaul Haque said different things are being speculated about this merger of banks. But the interests of the depositors will not be harmed irrespective of the method and process of merger.
The interests of the investors will also be taken care of, he added.
The Bangladesh Bank spokesperson stated that reputable audit firms will first assess the health of the banks that would be merged. Then the merger process will begin. The merging will be done with appropriate process and absolute transparency.
The central bank will inspect so that a better performing bank does not become weak and a weak bank becomes strong after the merger, he added.
Mezbaul Haque also expressed that the only way to assess a bank’s health is its audited financial statements, which is assessed through CAMELS system.
Speaking about a recent list drawn up by the Bangladesh Bank of the banks categorising them in red, yellow and green, Mezbaul Haque said that was based on perceptions.
The central bank will not take any action based on the list, he stressed.