commercial banks
Factors to consider before bank consolidation
For a long time, the banking sector in the country has been plagued by various complex problems. Failures in recovering loans from defaulters engaged in fraudulent activities, inability to control internal malpractices and ensure good governance, increasing incidence of insider lending, and the proliferation of banks—all these complex issues have slowed down the normal functioning of the banking sector. It is primarily to address these problems that the decision to consolidate banks has been taken.
Legal reforms are crucial for bank consolidation and identification of willful defaulters
At this moment, the most discussed issue in the banking sector is weak bank consolidation and willful defaulters being identified and brought under strict penalties. For a long time, the country's economists and bankers have been suggesting reforms for the banking sector, but the authorities have not heeded them. Recently, somewhat unexpectedly, Bangladesh Bank has instructed weak banks to merge with stronger ones in order to consolidate the banking sector. Simultaneously, there have been indications of adopting stringent measures against willful defaulters, who are considered as a 'menace' to the banking sector due to their significant influence and notoriety. Many have raised questions about why Bangladesh Bank has become vigilant regarding willful defaulters of loans and why it is initiating efforts for the consolidation of weak banks. Bangladesh Bank has not taken consistent or self-motivated initiatives to enforce stringent legal measures to address weak bank consolidation and identify willful defaulters of loans.
Banks to be open in some areas during the Eid holidays
According to a BB circular issued today (March 31), some branches of scheduled banks will be open for three days in a limited range to facilitate the payment of salaries, bonuses and other allowances to the workers, employees, officials working in the garment industry and payment of export bills.
Forex reserves reduce by $534 million in a week
Foreign exchange reserves have dropped by $534 million within a week, with bankers attributing the decline to continued dollar sales.
Bank mergers, acquisitions, or dissolutions?
Bangladesh has recently received approval for a loan of 470 million US dollars from the International Monetary Fund (IMF). The first installment of the approved loan has already been disbursed in favor of Bangladesh. Former Finance Minister A.H. Mustafa Kamal, after the approval of the IMF loan for Bangladesh, had stated in an interaction with journalists that Bangladesh has received the loan approval from the IMF just as it had requested. However, the former finance minister's statement was not entirely accurate because the IMF does not provide loans to any country without conditions. Perhaps the conditions for the loan might vary from country to country, being somewhat stringent or lenient.
Funding women entrepreneurs is essential achieving SDGs
Bangladesh is a progressive nation with a burgeoning development landscape. The possibility of women entrepreneurs thriving in our country is exceptionally bright. With necessary support, female entrepreneurs can contribute even more to national economic development by nurturing their innovative talents. According to the 2013 Economic Census, there were around 7.8 million enterprises in Bangladesh, with only about 7 and half being women-owned. However, with the right assistance, women entrepreneurs have the potential to significantly enhance the nation's economic progress. We are eagerly awaiting the upcoming census. Over the past 11 years, not only has the number of entrepreneurs in the country increased, but the number of women entrepreneurs has also significantly risen. There is no doubt that the growth of female entrepreneurs has been extensive. According to some opinions, the current rate of women entrepreneurs in the country is 20%. According to others, this number might be even higher.
Bangladesh Bank will issue new notes from March 31
Common people can exchange new notes till April 9, except on weekends and public holidays.
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