Deputy Leader of the Opposition in Parliament Anisul Islam Mahmud said the Bangladesh Bank has become a useless organisation, as the regulator itself cannot implement its policy.
He added, “You [regulator] have fixed the USD rate at Tk 117 as per the IMF direction on the crawling peg system, but if we go to the bank, LCs cannot be opened below Tk 120. That means no one is following the central bank's instructions.”
He made the comments at a dialogue programme titled, “What lies ahead for the banking sector in Bangladesh?” held in a city hotel on Thursday, organised by the Centre for Policy Dialogue (CPD).
Anisul pointed out, “Defaulted loans in the banking sector is a problem all over the world. But in our country, suddenly one morning it will be announced that ten banks are in trouble. It is not the right way, because the country’s banking sector problems are not new.
“It has been discussed for many years, so my complaint against the Bangladesh Bank is that it is not performing as a regulatory authority.”
Providing an example, the lawmaker said, “Who did not know about the condition of the Basic Bank, but what action was taken?”
An Asset Management Company (AMC) may be formed by the regulator to recover defaulted loans, but Anisul Islam criticised such an initiative.
He added, “Who will buy this asset? If it is government’s company, it will be implemented with the taxpayers' money. If it is privatised, then it will be seen that the assets of Tk 100 crore will be bought with Tk 20 crore.
“AMC is bogus and it will destroy the banking sector. The regulator is following IMF directives, but it will not help us. Such initiatives will go into a black hole.”
Discussing the reduction of RMG sector incentives, Shasha Denim Chairman Anisul Islam said, “Bangladesh’s economy depends on this sector. But incentives are also being reduced there. But after the LDC graduation, we will get three more years of additional time until 2029.”
The businessman added, “According to the IMF prescription to reduce subsidies, the prices of gas and electricity are increasing. Meanwhile, the price of the USD has also increased.
“RMG, the top contributor to the country's economy, is already in trouble. Now it will be destroyed by reducing incentives. Have you considered what will happen to us?”
