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Bank consolidation will not be successful unless these three issues are addressed

by endroar
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Despite realizations and announcements by two successive finance ministers and constant advice from experts, it took more than four years to take any effective action in this regard. It can be said that the new leadership of the current Bangladesh Bank has taken this matter seriously and started this necessary repair work and shown responsibility.

As part of business strategy, the terms merger and acquisition are used almost interchangeably in English, but there are significant differences between the two.

It is relevant for general readers to know that merger refers to the coming together of two organizations through an agreement to become more powerful as part of business strategy management, capture new markets, reduce operating costs and gain more profit, etc. This usually happens through autonomous decision making by the two organizations, which is a very common and accepted business strategy worldwide.

On the other hand, when a company buys all or most of the shares of another company, it is called an acquisition. Shareholders of the acquired firm may relinquish full ownership, or in some cases remain in the acquiring firm as minority shareholders.

Many examples of bank consolidation can be presented in the international arena. But their context was different. Taking the example of India, from 1969 to 2020, the country has a total of 34 bank mergers. These include both mandatory and optional mergers.

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