Centre for Policy Dialogue (CPD) Executive Director Dr Fahmida Khatun at a shadow parliamentary debate competition on Saturday said that Bangladesh's banking sector has lost its ability to support the country’s economy due to poor governance, leading the public to lose trust.
The debate on bank mergers, organised by Debate for Democracy at the FDC in Dhaka, was chaired by Debate for Democracy (DFD) Chairman Hassan Ahmed Chowdhury Kiron, according to a press release.
“Bangladesh Bank has lost its autonomy and is unable to make decisions independently, prioritising externally imposed decisions. Transparency and accountability are fading in regulatory bodies, including the central bank, preventing them from fulfilling their responsibilities,” said Dr Fahmida Khatun.
She said that the government was forced to merge banks based on IMF recommendations due to the poor state of the banking sector, adding that these mergers face challenges due to insufficient preparation.
“Forced bank mergers cannot be sustainable,” she said.
“The central bank cannot guarantee the safety of deposits, causing concern among depositors. The individuals responsible for the banking sector's troubles remain beyond reach, and accurate information about non-performing loans is not available to the public, causing further distrust,” Dr Khatun added.
Debate for Democracy (DFD) Chairman Hasan Ahmed Chowdhury Kiron highlighted that loan fraud, loan defaults, and money laundering are major issues in Bangladesh's financial sector.
"Loan fraudsters who steal money from banks and live luxuriously are a cancer in the economy. Instead of addressing this, Bangladesh Bank is forcing weak banks to merge with stronger ones. We must wait to see if this approach will be effective," he said.
“Bangladesh Bank cannot avoid responsibility for the instability in the financial sector,” he added.
Kiron also addressed the recent controversy over journalists being denied access to Bangladesh Bank, stressing the importance of media in supporting government transparency and accountability, especially in the financial sector.
“Bangladesh Bank should explain this decision. It is important to remember that the media supports government development by responsibly reporting significant financial irregularities. Reporting on issues like reserve theft, vault gold discrepancies, loan defaults, loan fraud, and money laundering is not a crime but a professional duty of journalists,” he said.
