Bangladesh Bank holds board meeting on digital bank assessment, not final approval
Bangladesh Bank Officers Welfare Council held a press briefing, alleging that the meeting had been convened hastily ahead of the formation of the newly elected government, ostensibly to push through licences for a controversial digital bank.
The much-debated digital banking licence has yet to be granted, as a board meeting yesterday chaired by Bangladesh Bank Governor focused on outlining the framework for evaluating applicant institutions, officials confirmed.
The meeting took place at the central bank around 3pm, with deputy governors and board members of the relevant divisions in attendance. Earlier in the morning, at 11am, the Bangladesh Bank Officers Welfare Council held a press briefing, alleging that the meeting had been convened hastily ahead of the formation of the newly elected government, ostensibly to push through licences for a controversial digital bank.
Dismissing the welfare council's assertion, Bangladesh Bank spokesperson Arief Hossain Khan explained, "The meeting was solely about presenting to the board how applications would be assessed and scored," stressing that this marked only the initial stage of the licensing process.
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A board member, speaking on condition of anonymity, confirmed that 13 institutions had been shortlisted for initial assessment. A dedicated Digital Bank Assessment Team will score applicants based on technical and business capabilities, with the highest-ranked institutions to be considered for licensing in later stages.
At a press briefing, Officers Welfare Council General Secretary Golam Mostafa Shraban questioned the timing of the 16 February session, citing the recent election and ongoing government formation. Convening an emergency board session on 16 February, he argued, could raise questions about the central bank's transparency and neutrality.
He further cited a conflict of interest, alleging that an applicant group currently being considered for the licence had previously been chaired by the current governor of the central bank, and warned that issuing a licence amid a fragile banking sector required careful scrutiny.
The welfare council demanded the postponement of the session and called for the annulment of any contractual appointments of advisers, consultants, or officials until a proper, transparent evaluation process is ensured.
The 13 applicants include British Bangla Digital Bank PLC; Digital Banking of Bhutan of DK Bank, Bhutan; Amar Digital Bank backed by 22 microfinance institutions; 36 Digital Bank PLC initiated by 16 entrepreneurs; Booster of Robi Axiata Limited; Amar Bank backed by several private entities; App Bank of UK-based expatriates; Nova Digital Bank of VEON and Square; Maitree Digital Bank PLC of microfinance lender ASA; Japan Bangla Digital Bank of DBL Group; Munafa Islami Digital Bank of Akij Resources; bKash Digital Bank of bKash shareholders; and Upokari Digital Bank of IT Solution Limited.
