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Four challenges, three risks in the economy of Bangladesh

by endroar

Regarding Bank Merger

The World Bank feels that it should be careful in the implementation of the process of bank integration that has started recently. The organization believes that banks should be merged based on asset quality and specific policies.

This statement from the World Bank comes in the context of the agreement signed between the two parties last month to merge the private sector Exim Bank and the troubled Padma Bank. People related to the banking sector believe that the process of merging the two banks is being done rapidly. Exim Bank and Padma Bank decided to merge after Bangladesh Bank announced plans to merge weak banks with good banks for the purpose of reforming the financial sector.

Abdullahi Sek of the World Bank said about the consolidation of banks, analysis is needed on how any reform program in the banking sector will take place. For example, in case of bank consolidation, the value of assets should be properly determined. Specific policies should be made for bank mergers and acquisitions. He said that the World Bank is ready to help Bangladesh in reforming the banking sector.

World Bank economist Bernard Haven said in the context of merging banks, initiatives should be taken with troubled banks. Banks should identify the problems and go through the process of consolidation. It should also be seen what kind of international best practices are used for integration. Because, good bank does not take extra liability.

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