Write an essay in English on "Merger and Liquidation of Financial Institutions in Bangladesh".
The size of Bangladesh's economy is 460 billion dollars. Against this economy, there are 62 commercial banks in the country. Economists believe that having 62 banks is too many for an economy of this size. Among the existing commercial banks in Bangladesh, there are noticeable mismatches in their type of business, scope, and coverage. The competition in the banking sector seems to be more focused on making profit. Due to the high number of banks, competition for profit has increased, and at the same time, the rate of defaulted loans is also rising.
Role of Banks in the Economy: Banks are financial intermediaries. They do not produce goods or have their own products. Instead, they act as a link between depositors and borrowers. The main function of a bank is to collect money from depositors at a lower interest rate and lend it to borrowers at a higher interest rate. Based on these loans, new industries are created, foreign trade grows, and employment opportunities increase. On the other hand, banks ensure the security of depositors' money and give interest in return for deposits. So, as an intermediary institution, banks earn profit by dealing with money. Therefore, banks play a very important role in a country's economy. Until the early 2000s, the performance and efficiency of Bangladesh's commercial banks were commendable. They made great contributions in areas such as poverty reduction, employment creation, facilitating foreign trade, supporting government purchases and budget deficits, and improving living standards.
Context of Bank Mergers in Bangladesh:
What is Bank Merger? A bank merger means combining one bank with another. For example, suppose there are two banks; Bank A and Bank B. If Bank A is financially stronger than Bank B and decides to combine with Bank B, this is called a bank merger. Results of a Bank Merger:
Initiative of the Central Bank: On January 31, 2024, during a discussion with top bank executives, Bangladesh Bank advised merging the weak banks.
EXIM Bank and Padma Bank: On March 18, 2024, for the first time in the country's history, Padma Bank was merged with EXIM Bank. Padma Bank (formerly Farmers Bank) was one of the nine banks approved in 2013. However, due to irregularities, its financial condition worsened significantly. Even after receiving multiple supports from the central bank, the situation did not improve.
Benefits of Bank Mergers: When banks are merged, the following benefits can be seen:
Before 2017, there were 17 state-owned banks in India. These were later merged into 10 banks. The main reason for bank mergers in the banking sector can be unfair competition. When smaller banks cannot compete with larger banks, they merge with the bigger ones. In Bangladesh's economy, the current rate of default loans is about 12.5%. This rate is higher among the new generation of banks. By merging weak banks with stronger ones, it is expected that management efficiency will improve, and the default loan rate will go down. In addition, the issues of liquidity and capital shortage will be reduced, and good governance in the banking sector will increase.
চাকরি প্রস্তুতির জন্য ইংরেজি বিষয়ের পাঠ্যসূচি মূলত দুইটি অংশে বিভক্ত— English Grammar ও English Literature। English Grammar অংশে ইংরেজি ভাষার গঠন ও নিয়ম শেখানো হয়। এর মধ্যে রয়েছে Parts of Speech, যেমন Noun, Pronoun, Verb, Adjective, Adverb ইত্যাদি; Tense (Present, Past ও Future); Voice (Active ও Passive); Narration (Direct ও Indirect Speech); Article (A, An, The); Right Form of Verb ও Subject–Verb Agreement; Preposition; Degree of Comparison; Sentence-এর প্রকারভেদ; Transformation of Sentence; Conditional Sentence এবং Modal Verbs। এই অংশে মূলত নিয়ম জানা ও নিয়মভিত্তিক বহুনির্বাচনী প্রশ্ন অনুশীলন করা জরুরি।
অন্যদিকে ইংরেজি সাহিত্য (English Literature) বলতে মূলত ইংরেজি ভাষায় রচিত বিভিন্ন যুগের সাহিত্যকর্মকে (কবিতানাটকউপন্যাসপ্রবন্ধ) বোঝায়যার সূচনা ৮ম-১১শ শতাব্দীতে ‘বিউলফ’ (Beowulf) নামক মহাকাব্যের মাধ্যমে । জিওফ্রে চসারকে ইংরেজি সাহিত্যের জনক বলা হয় । বিভিন্ন সাহিত্য যুগের (যেমন: রেনেসাঁরোমান্টিকভিক্টোরিয়ান) মাধ্যমে এটি বিবর্তিত হয়ে বর্তমান রূপ পেয়েছে ।
আপনি আমাকে যেকোনো প্রশ্ন করতে পারেন, যেমনঃ
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