Dhaka, April 5 -- The government's reform initiative in the chronically underperforming financial sector is gaining some momentum. Having belatedly, but finally, come around to the need for consolidation in what is a highly fragmented industry, i.e. banking, we can recall how the central bank misfired in some of its communication efforts earlier. In particular, its rhetoric on forcing mergers between 'good' and 'bad' banks caused a considerable amount of discomfort among the industry's sponsor directors. Which is why the guideline for mergers that it promised should have actually come out with the announcement of the policy itself. Anyway, better late than never, as they say.

Shapla Chattor, in a circular this week, did come up with the ...