Bangladesh Bank has identified a total of 38 banks as weak, including six state-owned banks. By analyzing the condition of 54 banks, strong and weak banks are identified. Whereas the position of 12 banks is extremely fragile, 9 of which have already moved into the red zone. There are 29 banks in the yellow zone. And three banks are very close to the red zone.
However, Bangladesh Bank says that this list of weak and strong banks has been made for resources. Bangladesh Bank’s Financial Stability Department lists six components of banks.
Bangladesh Bank Spokesperson and Executive Director Majbaul Haque said this in an emergency press conference on Tuesday (March 12).
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He said, Bangladesh Bank has listed weak-strong banks with six components. This is done for our own resources. We are not rated for media coverage. Besides, it is known which bank is weak. You can also see the picture from the stock market.
Not all of our reports are made public, the spokesperson added. Several reports must be kept secret in the national interest. Camels rating on banks is never meant to be public, it is confidential. Our various departments assess various components. Regular checks are done for financial risk management, not true health indicators.
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He said that a PCA framework has been developed to classify the banks. Where banks will be evaluated in four categories. This will be done based on the current year’s balance sheet. Which will be effective from May 2025.
About the merger, he said, in the next one year, there is a plan of merger (merger) in 10 banks. The process of merger is global. Bangladesh Bank will also have its own in the case of merger. Here a weak bank can become a strong bank, and a strong bank can become a stronger bank.
EAR/ZH/GKS
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