The government aims to address the excessive number of banks in Bangladesh by merging weaker banks with stronger ones, following a policy issued by the central bank on April 4. However, economists criticize loopholes in the policy, citing leniency towards directors responsible for bank irregularities. The policy allows merged bank directors to return after five years and protects employees from layoffs for three years. Currently, only specific bank mergers are approved, including Padma Bank with Exim Bank. Concerns arise about transparency in mergers and governance issues. The World Bank urges caution, advocating for international norms in banking reforms. Despite criticism, the policy offers central bank support and appeals for government assistance to ensure the financial stability of merged banks.
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