According to the World Bank, Bangladeshi authorities should exercise greater caution when merging banks and adhere to all international laws and guidelines at all times.
Abdoulaye Seck, the company’s country director for Bangladesh, made the announcement on Tuesday during an event at their Dhaka headquarters. The show debuted Bangladesh Development Update, the most recent report on Bangladesh.
The announcement was made concurrently with the signing of a merger agreement by EXIM Bank and Padma Bank, two private sector banks. Experts noted the merger procedure was moving at an unusually fast speed.
Abdoulaye Seck stated that in this context, an analysis of the banking sector’s reformation’s implementation is necessary. For example, when banks consolidate, the regulators should appropriately assess the caliber of resources. It is necessary to develop a specific legislation pertaining to bank mergers and acquisitions.
Additionally, he conveyed the World Bank’s desire to provide support for Bangladeshi banking sector reform.
Senior economist Bernard Haven of the World Bank addressed the program, suggesting that steps should be taken to center the ailing bank and that identifying any issues with the institutions should come before pursuing a merger.
He added that a good bank does not take on unnecessary obligations and that the authorities should investigate fair international practices underlying the merger.
