Bank merger guidelines: Acquiring bank will inherit accumulated losses
Dhaka, April 5 -- A bank will have to absorb accumulated losses and non-performing debts if it acquires a struggling one, but in exchange, it will enjoy special security provisions and other facilities.
The Bangladesh Bank unveiled a set of guidelines for bank mergers on Thursday while also offering policy assistance.
The guidelines not only aim to provide a lifeline to weaker banks but also seek to fortify the financial system by facilitating the expansion of a suite of services available to customers by stronger banks, the central bank said.
All banks in the country are obliged to follow the guidelines that allow a financial institution to get amalgamated with a banking company or a bank with another banking company or financial Inst...
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