An initiative to issue digital bank licenses just a day before the formation of a new government has been stalled following strong protests from the Bangladesh Bank Officers Welfare Council.
The Council demanded the cancellation of an emergency board meeting scheduled to approve the licenses on Monday. Although the meeting of the Board of Directors took place in the afternoon, no licenses were approved. Instead, the board was briefed on the evaluation scores of the applicant institutions, effectively halting the approval process amidst day-long tension at the central bank.
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During a press conference leaders of the Officers Welfare Council expressed deep concern over the timing of the emergency meeting. They noted that the meeting was called with only one day’s notice while the process of government formation following the 13th National Parliamentary Election (held on February 12) was still underway.
The Council alleged that the primary objective of the meeting was to grant a license to a specific group. They pointed out a potential conflict of interest, noting that the current Governor previously served as the chairman of a bank owned by that same group.
"This initiative is contrary to the fundamental principles of neutrality of the central bank," the Council stated.
They further alleged that unqualified individuals were being appointed as consultants based on personal ties to the Governor and that outsiders were being allowed to attend critical board meetings without official approval.
The Council raised several legal objections, citing the ‘Bank Company Act’, which prohibits one bank from being a subsidiary of another. They also highlighted that government approval is mandatory for holding more than 10 percent of shares. Taking such a major policy decision during a political transition is a violation of both law and established custom, the officials argued.
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Furthermore, the Council emphasized the fragile state of the banking sector, where the default loan rate exceeded 36 percent as of September 2025. With 61 scheduled banks already operating and many struggling to return depositors' money, they questioned the immediate necessity of new digital banks without a transparent and thorough review.
In the wake of the protest, the central bank issued an official order prohibiting employees from making statements to the media or at public gatherings regarding bank policies without prior approval.
Arif Hossain Khan, spokesperson for Bangladesh Bank, clarified to the media that the emergency meeting only reviewed a progress report on the digital bank applications and that no final decisions were made.
According to central bank data, 13 entities have applied for digital bank licenses.