Dhaka, Feb. 15 -- The recent initiative by the Bangladesh Bank (BB) to promote mergers within the country's banking sector has prompted a chorus of warnings from industry experts.
While financial sector reforms aim to tackle issues like non-performing loans (NPLs), capital adequacy ratios, and operational efficiency, the potential drawbacks of merging strong and weak banks cannot be ignored.
Industry representatives have voiced legitimate concerns about the consequences of such mergers.
The BB's introduction of Prompt Corrective Action (PCA) for weak banks, accompanied by penalties and merger provisions, demonstrates a proactive approach to addressing systemic weaknesses.
However, the effectiveness of these measures depends on meticulou...