Central Bank identified 10 weak banks

Bangladesh Bank has marked 10 banks as weak banks. This list has been made by considering the level of classified loans, capital adequacy, loan-deposit ratio and the amount of provisioning or security.

This was stated by Governor Abdur Rauf Talukder in ‘Meet the press’ organized at the Jahangir Alam conference room of the Central Bank on Thursday (August 4). However, he did not mention the names of the banks.

The report of the central bank in Meet the Press said that the master circular regarding debt rescheduling and restructuring has been issued to ensure transparency and accountability regarding the implementation of bank decisions in debt management. According to the conditions mentioned in this circular, the banks will be able to decide on the above matters themselves, which was done earlier in a very opaque and uneven manner.

In order to identify relatively weak banks, four variables such as level of classified loans, capital adequacy, loan-deposit ratio and amount of provisioning have been taken into consideration. Based on this, 10 weak banks have been identified.

Bangladesh Bank is starting discussion process on one-to-one basis with the identified weak banks to solve their problems. In this case, the banks will give a three-year business plan, the progress of which will be monitored by a senior official of Bangladesh Bank.

The governor said, I do not want to name the weak banks. However, the name has already appeared in the newspaper. Our aim is to make banks financially stronger through development.