No new banks, please
Our banking sector is in disarray, as the number of non-performing loans is soaring at an alarming level. Currently, 57 banks are operating in the country. If the government gives permission to three new banks, as the finance minister has suggested, it will create further tension in the financial sector. The finance minister could not come up with a convincing reason as to why we need new banks. He naively argued that new banks could reach out to those who are not using banking service as of now, but even a novice would understand that the existing banks could do exactly that just by extending their services.
It should be noted here that nine new banks got licenses in 2013, on political consideration, some of which are in a terrible condition now. If their cases are any indication, the three new banks will suffer the same fate.
Zonaed Emran, By e-mail
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