The World Bank believes that more caution is needed in bank mergers. The agency said the process needs to be done in accordance with international norms. The organization believes that banks should be merged on the basis of asset quality and specific policies.

Bangladesh Development Update or Bangladesh Development Update report is released today. It has been said there.

A press conference was organized at the Dhaka office of the World Bank on the occasion of the release of the report. Abdullaye Sek, Country Director of the World Bank, gave a speech. Economists Ranjit Ghosh and Bernard Haven of the organization’s Dhaka office highlighted various aspects of the report.

Recently an agreement has been signed between the two parties regarding the merger of Exim Bank and Padma Bank. The people concerned feel that this process of integration is being done very quickly. Last March, Bangladesh Bank planned to merge some weak banks with strong banks.

In a press conference about bank consolidation, World Bank’s Abdullahi Sek said, analysis of how any reform program in the banking sector will take place is necessary. For example, in case of bank consolidation, the value of assets should be properly determined. Specific policies should be made for bank mergers and acquisitions. The World Bank is ready to help Bangladesh in reforming the banking sector.

World Bank economist Bernard Haven said in the context of merging banks, initiatives should be taken with troubled banks. Banks should identify the problems and go through the consolidation process. It should also be seen what kind of international best practices are used for integration. Because, good bank does not take extra liability.