To merge five public and private banks, an estimated TK 60 to 70 thousand crore will be required over the next five years. Doubts have emerged regarding the source of this significant amount of money. Several banks have objected to the central bank’s merger directives, leading to depositors withdrawing funds, and worsening the condition of some banks.
Following Bangladesh Bank’s suggestion to merge weak banks, several mergers were announced. However, the process has been met with resistance, particularly from the owners of weak banks who fear losing control and those who have defaulted on loans.
The integration process, initiated without proper planning, has caused panic among depositors and bank employees. Moreover, the banks being consolidated have more liabilities than assets, requiring significant financing. If the asset management company is established as a government institution, it will need financing through the budget, or if financed by Bangladesh Bank, it will lead to inflationary pressure.
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