Govt won't let any bank die: Muhith

FE Report

The government would never let any bank die following financial crunch, as the depositors would be affected (if any such thing happens), said Finance Minister A M A Muhith on Thursday.

He said this while talking to the newsmen after a pre-budget meeting for the upcoming fiscal year, 2018-19, with the think-tanks.

Mr Muhith said four to five other banks would be 'forced' to buy 60 per cent share of the problem-stricken Farmers Bank Limited (FBL) to salvage it.

"Some economists in the meeting said let the problem-ridden entities die. But I would never let this happen."

"Farmers Bank is making profit, and I have persuaded them that they have to sacrifice its majority shares," the finance minister further said.

"Collapse of a bank is a national issue, and we have less experience on that."

He also unveiled his plan to conduct a study to assess the capital strength of the state-owned banks and required budget provision.

Mr Muhith hinted to provide cash subsidy to the jute goods exporters following their demands. On leather sector, he, however, regretted lack of proper planning to relocate the tannery units.

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