Bank Merger Debate Reemerges as Weak Banks Lose Public Trust

Industry: Bank, Financial

As confidence in Bangladesh’s struggling banks continues to decline, the debate over bank mergers has resurfaced. During the previous Awami League government, former Bangladesh Bank Governor Abdur Rouf Talukder pushed for a merger policy, which faced delays due to procedural irregularities and a government change. Recently, deeper issues within the banking sector prompted the interim government to take corrective actions, including forensic audits and restructuring of 11 banks. Bangladesh Bank Governor Dr. Ahsan H. Mansur indicated that some banks will be merged, further increasing public anxiety. Customers are withdrawing their deposits, fearing potential bank failures. Analysts stress the importance of clear communication to prevent panic. Forensic audits are underway to evaluate struggling banks, and decisions regarding mergers will depend on the findings. Experts call for decisive action and transparent communication to restore public confidence and avoid a broader economic crisis.

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