Abul Hassan Mahmood Ali 
Merger of weak banks with healthy ones, planned to help them survive, is endorsed by the finance minister as good medication for the weaklings.
"…it (merger) can be done," says Abul Hassan Mahmood Ali in support of the Bangladesh Bank initiative made as part of financial-sector reforms.
"A couple of banks are even failing to operate. Merger is good for them," the finance minister, who took over just recently after the polls, told newsmen Thursday at his Bangladesh Secretariat office.
Earlier, Canadian High Commissioner in Bangladesh Lilly Nicholls and Resident Representative of the International Monetary Fund (IMF) for Bangladesh Jayendu De met the minister at his office. The IMF is periodically verifying execution of its lending terms.
Finance Minister Mr Ali points out that merger of banks and financial institutions are taking place frequently in developed economies.
However, the minister said he was yet to receive any proposal for merger of any bank. "Let them submit proposal. Then we will see it."
Earlier on January 31, the banking-sector regulator asked the commercial banks to follow a newly-devised matrix called prompt corrective action (PCA) framework or face the risk of tough actions like mergers and acquisitions from March 31, 2025 based on their annual audited financials for the period ending December 31, 2024.
"Any bank failing to achieve the target level mentioned in the framework will face consequences like mergers and acquisitions," the central bank spokesperson had said on a note of alert from the regulator.
Regarding meeting with IMF's Resident Representative, he struck a note of positivity on the economy test on the IMF credit as he said Bangladesh is on track for getting the third instalment of the $4.7-billion loan.
"The targets they gave, we are meeting them well," said the minister.
Mr Ali said in March another IMF team would visit Bangladesh and check the progresses on the lending package deal. "I think we will be able to pass in the second review (too)."
On a question regarding exchange rate of the taka against the US dollar he said for now, the 'crawling peg' system will be followed.
Regarding talks with the Canadian High Commissioner, the minister said he had talks with the envoy about investment in Bangladesh, among other issues.
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