“Digital bank licence stalled due to Bangladesh Bank’s objection.”

On the eve of the formation of a new government, a sudden initiative to grant licences to digital banks has been halted following strong objections from the Bangladesh Bank Officers’ Welfare Council. The council voiced its protest by demanding the suspension of the central bank’s board meeting scheduled for Monday morning.

Despite the board convening in the afternoon, no approval for any digital bank was granted. At the last minute, the meeting agenda was altered to present the scores assigned to each applicant for the digital bank licence, rather than taking any final decision. This move effectively stalled the entire licensing process, sparking tension within Bangladesh Bank throughout the day.

Following a morning press conference by the Officers’ Welfare Council, the central bank issued a directive forbidding employees from making statements on banking policies or decisions in public forums, media conferences, or private gatherings without prior authorisation.

Speaking to Prothom Alo, Bangladesh Bank spokesperson Arif Hossain Khan confirmed that an emergency board meeting had reviewed the progress reports of the digital bank applications, but no decision had been made.

Council Raises Concerns Over Transparency and Neutrality

During the press conference, council leaders expressed deep concern over the hasty call for the emergency board meeting on 16 February, only a day’s notice after the 13th National Parliament elections on 12 February, while the swearing-in of the newly elected representatives and government formation were underway. The council warned that such a process risked undermining the transparency and professionalism of the central bank.

The council further alleged that the current governor had a past connection with a bank owned by one of the applicant groups, raising questions of conflict of interest. They also highlighted the appointment of unqualified advisers and the inclusion of external individuals in key meetings without board approval, describing it as unprecedented malpractice.

According to the council, granting digital bank licences at this politically sensitive juncture violates both banking law and established practice, particularly regarding subsidiary ownership and government approval for holdings exceeding 10%. The move, if implemented, could create monopolistic risks in the banking sector.

High Non-Performing Loans Highlight Caution

The council stressed that, with 61 scheduled banks and numerous financial institutions in operation, the non-performing loan rate had surpassed 36% as of September 2025, causing several banks to struggle in returning depositor funds. In this context, careful review of the necessity for new digital banks is essential.

Council Demands:

• Immediate suspension of the digital bank licence process

• Investigation into conflicts of interest and nepotism

• Restoration of central bank autonomy and professionalism

• Leadership changes if required to regain trust

Digital Bank Applicants

Bangladesh Bank has received applications from 13 entities seeking digital bank licences. Key applicants include:

The outcome of the licensing process remains uncertain, with the central bank now under scrutiny from both its employees and the wider financial community.