B Mirror Report:  The Association of Banks (BAB) held a meeting with the central bank governor to discuss key issues surrounding the country’s banking sector, including the current financial situation, merger plans for weak banks, and the revival of troubled industrial enterprises.

Following the meeting on Monday, BAB Chairman and Dhaka Bank PLC Chairman Abdul Hai Sarker briefed journalists, saying discussions focused on policy matters and recent challenges facing the banking industry.

Business leaders raised concerns over the revised Section 18-K of the Companies Act, fearing that loopholes in the law or its interpretation could allow groups previously involved in irregularities to regain control of banks.

However, Abdul Hai Sarker said the governor made it clear that strict enforcement of the existing Bank Regulation Act would prevent any return of individuals involved in banking sector misconduct or looting. He also noted that the debated provision is not currently in effect.

The meeting also discussed a proposed special financial support package worth around Tk 40,000 crore aimed at reviving closed and struggling industrial enterprises.

According to officials, the package will not be available to all companies. Priority will be given to businesses with genuine operations that are facing production disruptions due to shortages of working capital.

Abdul Hai Sarker said any company seeking support would undergo strict scrutiny, including assessment of its financial condition, liabilities, business viability, and past activities. The central bank is focusing on preserving effective and promising industrial enterprises.

On the issue of weak bank mergers, the BAB chairman said the governor remains firm on implementing previously announced plans to merge five financially troubled banks.

The meeting also addressed ongoing gas and electricity shortages affecting the industrial sector. Business leaders said many factories are unable to operate at full capacity due to prolonged energy shortages, increasing production costs and disrupting operations.

Overall, business representatives highlighted various concerns related to the banking and industrial sectors. The central bank assured positive consideration of the issues raised while reiterating its commitment to strict scrutiny in providing any financial assistance.