Quick steps needed to ensure good governance in banks
The government should take proper, visible and fast actions to ensure good governance in the banking sector, said economists yesterday.
They spoke at the unveiling of the fourth edition of Banking Almanac, a source of information on financial institutions in the country, at the Dhaka Reporter's Unity in the capital.
Published since 2016, Banking Almanac is a research project of Shikkha Bichitra, an education-related weekly magazine.
The banking sector is facing monumental challenges because of corruption, higher non-performing loans, the volatility in the foreign exchange regime, and liquidity crunch.
"The government should publish all activities that have happened in the banking sector. Though it may face some criticism if the government does so, it will help remove the problems," said Salehuddin Ahmed, a former governor of the central bank.
"But if they are kept hidden, the problems will only deepen.
"The government should publish all activities that have happened in the banking sector. Though it may face some criticism if the government does so, it will help remove the problems," said Salehuddin Ahmed, a former governor of the central bank
To ensure good governance in the banking sector, all necessary steps should be taken fast and they should be visible."
Ahmed, the chairman of the editorial board of the Banking Almanac, urged the government to take strong measures for the betterment of the banking sector.
The activities and the process of the formation of rules and regulations in the financial sector should come under accountability, said Hossain Zillur Rahman, a former adviser to a caretaker government.
He said bona fide data is necessary for the improvement of the economy but some problems remain in getting the real data.
"Banking Almanac is playing a good role here."
Rahman, also the executive chairman of the Power and Participation Research Centre, cited the example of homeless people living on footpaths.
"This indicates that poverty is rising."
Regarding the interest rate ceiling in the banking sector, the economist said what is happening regarding the deposit and lending rates are unacceptable.
The central bank has maintained a 9 per cent lending rate cap on loans since April 2020. As a result, the country has not been able to rein in the supply of liquidity to give a boost to its fight against inflation, which is running high.
Planning Minister MA Mannan said the global economic turmoil had impacted most countries, including Bangladesh.
"We will be able to overcome the situation without any big losses, hopefully," he added.
Mohammad Nurul Amin, a former chairman of the Association of Bankers, Bangladesh, Md Khalilur Rahman, a former chairman of the Bangladesh Leasing and Finance Companies Association, Syed Ziauddin Ahmed, executive editor of Banking Almanac, and Abdar Rahman, publisher of Banking Almanac, also spoke.