The merger process between weak and strong banks has spread a sense of panic among banking customers in Bangladesh. Especially when it comes to depositing money, depositors are experiencing a dilemma, leading to a rapid decline in deposits across the country's banks. Observers in the banking sector have expressed concern over this situation.

Depositors say there is now nothing left to fear. "For so long, government officials have only plundered; now, through mergers, they are plotting to completely swallow the deposits of bank customers," they commented.

They added, "It is natural for ordinary customers to withdraw their money in such a situation."

The banking sector in the country has been plagued by various crises for a long time due to irregularities, liquidity crises, loan defaults, and a lack of good governance. This has put a strain on the foreign currency reserves. In response to this chaotic situation, Bangladesh Bank has initiated the merger process. However, since the start of this process, rather than maintaining order in the country's banking sector, it has spread a sense of panic among depositors and bankers. Following the announcement of the merger in April, Basic Bank lost deposits worth 2,000 crore taka. Currently, Basic Bank holds deposits of 12,000 crore taka.

Meanwhile, depositors from Bangladesh Development Bank PLC have withdrawn about 100 crore taka. A Sharia-based private bank received 12 requests for deposit returns in a few days, each involving large amounts of fixed deposits.

Mamun Rashid, a customer of Janata Bank, said, "What's left in the banking sector? There's a liquidity crisis, a lack of good governance, and a lack of trust. Why would people keep their deposits in such a situation? They promise 250,000 taka in compensation if the bank goes bankrupt, but what about someone who has millions deposited?"

Arpan Kabir, a depositor at Basic Bank, said, "Everyone should withdraw their money from banks in Bangladesh. Because people's trust in the banks is gradually decreasing due to the activities of the Awami government and Bangladesh Bank."

A customer of BDBL, MD Mahbub, commented, "What the bank customers are fearing after the merger is now all true. Those who have defaulted on thousands of crores are not being affected. It always turns around to the detriment of ordinary bank customers."

Last March, the merger agreement between Exim and Padma Bank was signed, starting the process of merging weak banks with strong or well-performing ones. However, directors and officers of good banks are worried because they fear that merging with bad banks could impose burdens on them. Bangladesh Bank has proposed merging ten banks, putting an equal number of good banks under pressure. Sources say that the merger will result in a loss of 25,000 crore taka for the banks.

Mohammad Afzal Karim, Managing Director of Sonali Bank, assured that there is no reason for the customers of the merged banks to be anxious. "The merger of a bad bank with a strong bank should provide relief to depositors."

He added, "Depositors' money will be safe with the larger and stronger banks."

Former Governor of Bangladesh Bank, Dr. Mohammad Farashuddin Ahmed, said, "The policy for consolidation should have been more constructive. The banks that are becoming bad due to default loans have many poor people's savings. Instead of merging them like this, there should have been a strategy or policy to improve the bad banks."

He also stated, "There is no alternative to good governance to bring discipline back to the banking sector."

On the other hand, Ahsan H. Mansur, Director and Economist at the Policy Research Institute (PRI) of Bangladesh, expressed significant concerns about Bangladesh Bank's merger policy. "Directors, officers, and staff of the banks must be maintained for three years. There is no mention of these issues in the policy."

He explained, "Those who will lose their jobs due to the bank merger must be compensated, and this compensation mechanism needs to be very transparent. The compensation should neither be too high nor too low—this should be determined through an internal competitive assessment. These issues are not addressed at all in the bank's policies."