Depositors safe as state to take over weak banks that fail to recover: BB governor

Bangladesh Bank Governor Ahsan H Mansur has said that depositors have no reason to worry as the government will take over any weak bank that fails to recover.

Speaking at a press conference held at the central bank headquarters today (14 May), he assured that the central bank will continue to support struggling banks, and it now has the authority to acquire banks under the newly approved Bank Resolution Act.

"The Bank Resolution Act has already been approved, granting the central bank significant powers. If a bank faces a shortfall, we will consider a merger, acquisition, or even liquidation. If necessary, the state may temporarily take over such banks," Mansur said.

"There's no reason for depositors to panic. The central bank is here to protect depositors. No one will lose their money. Keep your deposits where they are. Our primary goal is to safeguard depositors' funds," he said.

Responding to a question about the stock market volatility due to some listed banks not finalising their financial reports yet, the governor said, "We have only enforced the regulations. In the implementation phase, some banks are facing difficulties. They have requested more time, and we will allow them one more month to complete their financial statements."

Regarding the acquisition of banks under the Bank Resolution Act, the governor said, "If we acquire any bank, we will take into account the interest of stock market investors."

Commenting further, he said, "Those who invested in weak banks did so knowingly. Our actions may not be favourable for people like S Alam and Saifuzzaman. They have destroyed banks — why should we show them any sympathy?"