According to Bangladesh Bank sources, 40 out of 61 banks of the country are performing better. The remaining 8-10 banks may merge with others. For this, he advised the MDs of better performing and weaker banks to start discussions among themselves.
The governor made this suggestion on a day when Padma Bank Chairman Chaudhary Nafeez Sarafat reportedly resigned from the bank. Earlier, the board of directors of National Bank was also dissolved several days ago due to internal discord in the board. Bangladesh Bank also had to issue bonds to keep Sharia based banks alive.
The banking sector has been in a chaotic situation for a long time due to irregularities, mismanagement and anarchy. Many studies have shown that not only default loans are increasing but billions of taka are also being looted from the banking sector.