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Bangladesh Bank has issued regulations stating that the Managing Directors (MDs) and Deputy Managing Directors (DMDs) of the weaker banks involved in the merger will lose their jobs. This was announced on Thursday, April 4th.
The director of the struggling bank resulting from the merger cannot hold any director position in another bank for 5 years. Four annexures on various topics are provided with the policy.
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Banks in poor condition will be merged if they don’t do it voluntarily. They must sign a memorandum of understanding before the merger. A detailed plan, including repayment plans for depositors, creditors, and investors, must be submitted.
Bangladesh Bank will use external auditors to assess the bank’s financial situation. After completing the necessary steps, the final merger application must be submitted to the court.
