Bank now becomes a family business: Salehuddin Ahmed

All the banks that have got approval on political grounds are now in a weak position because the owners of these banks had the intention of embezzling money. Bank has now become a family business due to policy mistakes of the central bank.

Lack of political will is a major obstacle to ensuring good governance in the banking sector. Because the politicians are businessmen who are also the owners of media houses and banks. As a result, corruption is increasing and there is a lack of good governance.

Salehuddin Ahmed, former governor of the Bangladesh Bank, made these remarks while speaking as the chief guest at a shadow parliament debate competition titled “Merger Can Improve Good Governance in Banking Sector” organised by Debate for Democracy on Saturday.

Debate for Democracy Chairman Hassan Ahamed Chowdhury Kiron chaired the event.

Regarding bank merger, Salehuddin Ahmed said, "Efforts made to resolve the crisis through bank merger are positive but the process is complicated. It should be ensured that weak bank owners who are financial frauds do not get release through such process.”

The economist thinks that punishment should be meted out to defaulters and money launderers. In order to overcome the crisis of weak banks, emphasis should be placed on ensuring that strong banks do not become weaker.

Referring to the defaulters, Salehuddin Ahmed said, "In many countries of the world, defaulters are socially excluded. They cannot do business, rent or even buy petrol at petrol pumps. But in our country, debtors and money launderers travel as VIPs at the airport.”

At the event, 10-point recommendation came up regarding merger with the banks. It includes setting up of special tribunals to recover money embezzled from banks. For this, the existing laws need to be amended.

Not only merger of weak banks with strong banks, but also to identify those who are responsible for weakening the banks and take legal action so that these dishonest people cannot get away during the government's bank consolidation process. Besides, it should be made clear who will bear the losses of weak banks.

The recommendations also include establishing an independent banking commission to ensure good governance in the financial sector, publishing the list of loan defaulters and money launderers, including those involved in loan fraud, at the Parliament and banning them from traveling abroad, playing a neutral role in the media.

BGMEA University of Fashion and Technology debaters won the motion in the shadow parliament, defeating Prime University debaters. Trophies, crests and certificates were awarded to the winning team at the end of the competition.

The judges of the competition were Prof Abu Muhammad Rais, SM Morshed, journalists Daulat Akhtar Mala, Iqbal Ahsan and Salim Malik.