New banks cannot be restricted: Governor
Bangladesh Bank Governor Fazle Kabir has said, there is no reason to restrict inception of new banks. I am not saying that we are taking a u-turn on new banks. That is not at all. We will scrutinize the matter.
His comments came in after declaring the monetary policy of the second half of the current year at Bangladesh Bank on Monday.
Governor said, after scrutinize if the board thinks that should not be happened then steps will be taken accordingly. This cannot be prevented.
Fazle Kabir said, the condition of fourth generation banks are not well. This is happening for some specific banks. The issue of merging is also highlighted. But there is nothing to do by the central bank.
Severe unease situation was experienced in the banking sector in the last part of the previous year. The beginning was with Islami Bank. The changes came in the meeting of governing council of the bank in this January. Unease situation was also seen centering the ownership in the Social Islami Bank, NRBC Bank and Farmers Bank. 9 politically considered banks were in special discussion. Amendment of Bank Company Act, excess loan default and Basic Bank scam- nothing was excluded from the discussions.
Under this circumstance economists suggested for merging the adversity affected banks.
Governor Fazle Kabir said, the option of merging is only for their own banks. In this regard there is nothing to do with the existing Bank Company Act or the central bank has nothing to do with the existing law of the country. Or we may say government has nothing to do.
He said, with which bank another will merge that decision has to be taken by the banks. They will request for merging. Still now there is no alternative law in this regard.
Some banks are being bankrupted. Insufficiency of capital was occurred. There were changes in ownership of banks. The reports were published.
Talking on the matter the Governor said, ownership change may be happened. This is a normal process. An owner can sell his share to another.
The monetary policy was declared at the Jahangir Alam Conference Hall of Bangladesh Bank on Monday.
In the new monetary policy the credit growth was raised to 16.8 percent in the private sector and was decreased to 8.3 percent in the government sector till June.
After declaring the monetary policy the Governor gave different information to the newsmen.