Digital Bank Debate Deepens at Bangladesh Bank
On the eve of forming a new government, Bangladesh Bank became embroiled in controversy over a hurried proposal to issue licenses for digital banks. In protest, the Bangladesh Bank Officers Welfare Council held a press conference on the morning of 16 February, ultimately leading to no approvals being granted at the board of directors’ meeting.
Although a proposal to approve digital banks was scheduled for an emergency board meeting presided over by Governor Ahsan H. Mansur in the afternoon, the agenda was changed at the last moment. The meeting instead presented progress reports on the evaluation scores of the applicant institutions, without any final decisions, according to central bank spokesperson Arif Hossain Khan.
Sources indicate that documents assessing the applicant institutions were reviewed during the meeting, with several directors expressing dissatisfaction over the emergency convening.
According to the central bank, 13 institutions have applied to establish digital banks. These include British Bangla Digital Bank PLC, Digital Banking of Bhutan, Amar Digital Bank, 36 Digital Bank PLC, Boost, App Bank, Nova Digital Bank, Maitree Digital Bank, Japan Bangla Digital Bank, Munafa Islami Digital Bank, bKash Digital Bank, and Upokari Digital Bank.
Earlier, during the morning press conference, leaders of the Bangladesh Bank Officers Welfare Council expressed concern that the emergency board meeting on 16 February had been called on just one day’s notice, coinciding with the swearing-in of newly elected representatives and the formation of the government after the 13th National Parliamentary election on 12 February. They warned that this could compromise the transparency and professionalism of the central bank.
The council accused the meeting of being intended to favor a specific group, noting that the current governor had previously served as chairman of a bank linked to that group. Allegations were also made that close associates of the governor had been brought into advisory and policymaking positions despite lacking qualifications.
The press conference further revealed that an external individual had been allowed to participate in card issuance and key meetings without board approval—an unprecedented move, according to the council. They argued that taking such significant policy decisions amid an interim political situation could contravene laws and procedures, creating a monopoly risk in the banking sector.
The council highlighted that Bangladesh currently has 61 scheduled banks and numerous financial institutions. As of September 2025, they claimed, non-performing loan rates had surpassed 36 percent, with many banks struggling to return depositors’ funds. In this context, they demanded a thorough and transparent review regarding the necessity of new digital banks.
The press conference was chaired by council president A K M Masum Billah, with general secretary Golam Mostofa Shraban and several central bank officials in attendance.
Following the morning press conference, Bangladesh Bank issued an office order in the afternoon stating that no employee may speak personally, in informal meetings, or at press conferences about bank-related or policy matters without approval.
While the issuance of digital bank licenses is temporarily suspended, discussions and tensions regarding the issue continue both inside and outside the central bank.
DBTech/SMEH/MUM/OR
