Dhaka, Jan. 21 -- Bangladesh Bank Governor Dr Ahsan H Mansur on Wednesday said that 10 to 15 banks would be enough for Bangladesh's economy, signalling a major move towards consolidating the nation's overcrowded financial sector.

Speaking at a seminar titled 'Banking Sector: Current Challenges and Future Prospects' at Jagannath University, the Governor revealed plans to reduce the number of state-owned banks to just two through strategic mergers.

"There are currently 61 banks in the country, which is far more than necessary. Considering the reality, 10 to 15 banks are enough for Bangladesh. Reducing the number of banks will make it easier to ensure good governance," Dr Mansur said.

He delivered a grim assessment of the sector's current...