Better closing down the weak banks than merge them: BTMA President

BTMA President Shawkat Aziz Russell has called for shutting down weak banks instead of merging them, arguing that “dead banks” waste public money and reward mismanagement. Speaking at a CPD dialogue on 365 Days of the Interim Government, he suggested transferring some branches to healthy banks to protect jobs and refunding depositors directly.

Participants, including BGMEA President Mahmuduzzaman Khan Babu, warned that premature merger announcements have disrupted LCs and hurt RMG clients. Bankers urged Bangladesh Bank to clarify its merger strategy, with Global Islami Bank Chairman Nurul Amin saying a decision on struggling banks would come within 15 days.

Former Finance Secretary Mohammad Muslim Chowdhury cautioned against central bank-funded bailouts, while other speakers highlighted governance failures, sector-specific reforms, and the need to priorities education, healthcare, energy planning, and political stability to fix the economy.