Banks can voluntarily merge until December: Bangladesh Bank

Weak banks will be able to voluntarily merge with the sound ones until December this year, otherwise the central bank will evaluate their performances and take decision on merger and acquisitions, said Md Mezbaul Haque, spokesperson of Bangladesh Bank.

After the December deadline, the first evaluation will be conducted in March of 2025 under the Prompt Corrective Action (PCA) framework, he said.

The PCA Framework, a procedural guideline for mergers introduced by the central bank, is scheduled for implementation in March 2025, based on performance and financial indicators as of December 2024.

Haque, also the executive director of Bangladesh Bank, shared the information in a discussion with journalists at the central bank headquarters in Dhaka's Motijheel today.

The central bank's recent list of the country's weak and strong banks—which was published by different media outlets—was prepared for research purposes and it was not meant for the media, he said.

Protection of depositors' money will be the first priority in case of merger of weak banks with the sound ones, he said.

Financial protection of strong banks will also get priority, Haque added.