Bangladesh Bank will continue addressing the country’s weak banks through a phased restructuring process rather than attempting to resolve all troubled institutions at once, Executive Director and spokesperson Arif Hossain Khan said on Tuesday.
Speaking to reporters at the central bank headquarters, Khan said the strategy reflects Bangladesh’s financial realities and is being implemented based on the central bank’s own assessment.
He said the first phase focuses on the merger of the five most distressed banks. Additional measures for other financially weak banks will be taken gradually in subsequent phases.
Commenting on recommendations from the International Monetary Fund (IMF), Khan said the organization, as a development partner, may offer advice and observations, but Bangladesh Bank is not obligated to implement every recommendation. Instead, decisions will be made in line with the country’s financial structure, legal framework, and prevailing economic conditions.
The central bank is working continuously to improve the financial health of troubled banks, he said, adding that any significant progress will be communicated to the media through official channels.
Addressing concerns from depositors of Padma Bank and ICB Islamic Bank over the return of their funds, Khan said the simultaneous financial distress affecting multiple banks has made it impossible to resolve every case at the same time. As a result, the most vulnerable institutions have been given priority, while decisions on relatively weaker banks will follow in stages.
He added that Bangladesh Bank will consider the interests of depositors, customers, employees, and the overall stability of the affected institutions before making final decisions. He also urged customers of weak banks to remain patient as the restructuring process continues.
Responding to questions about the government’s decision to abolish the proposed “haircut” policy for depositors of the Combined Islamic Banks, Khan said technical and legal preparations are currently underway.
He explained that even after a policy decision is made at the state level, it cannot be implemented immediately through a circular. The necessary legal framework, implementation procedures, and regulatory reviews must first be completed.
Khan emphasized that Bangladesh Bank operates within the government’s policy framework and will implement decisions once the required technical preparations are finalized. An official announcement will be made after the process is complete.
