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Managing Directors (MDs) and Deputy Managing Directors (DMDs) of the merged weaker banks will lose their jobs. Apart from this, the director of the bank that is in bad condition between the two merged banks cannot be a director in any other bank for the next 5 years.
Bangladesh Bank has issued Bank Merger Regulations on Thursday adding various such issues. There are four annexures on various topics to the policy.
In light of the policy, banks in bad condition will be compulsorily merged if they do not merge on their own. A memorandum of understanding has to be signed between the two banks before the merger. Then the detailed plan especially the plan for repayment of depositors, all creditors and investors should be submitted.
Besides, Bangladesh Bank will find out the overall financial picture of the bank through external auditors. At the end of various processes, the final application for merger must be made to the court.
Bangladesh /SA
