The Bangladesh Bank is seeking the Finance Ministry's approval to loosen the rules on shareholding for digital banks. If approved, investors could potentially own more than 10% of shares, a significant increase from the current limit. This move is seen as a strategic step to encourage investment in the digital banking sector, which is crucial for technological advancement, cybersecurity, and innovation. However, it has sparked debate among experts, with concerns about potential dominance or misuse of the banks by certain entities. The Bangladesh Bank argues that the flexibility is necessary for the effective establishment and sustainable operation of technology-driven digital banks, emphasizing the importance of long-term engagement from strategic investors. The Finance Ministry has previously relaxed these limits for Nagad Digital Bank investors, and the current proposal could follow a similar path. But here's where it gets controversial: some experts warn that without proper monitoring, this could lead to excessive share acquisition and potential misuse of the banks. The Centre for Policy Dialogue (CPD) has expressed the need to maintain the rationale behind the relaxation and ensure no individual, company, or institution dominates the digital banks. The deadline for digital bank applications has also been extended to November 2nd, giving more companies the opportunity to apply, including mobile operator Banglalink and Akij Resources. This move has the potential to reshape the digital banking landscape in Bangladesh, but it remains to be seen how the Finance Ministry will respond to the Bangladesh Bank's proposal. Will they approve the higher shareholding limits, and if so, what safeguards will be put in place to prevent potential misuse? The comments section is open for discussion, and we invite you to share your thoughts on this controversial topic.
