BB-led banking commission won’t be fruitful: TIB

A banking commission under the leadership of the Bangladesh Bank will not produce any fruitful result as the central bank has already failed to perform its duties, the Transparency International Bangladesh (TIB) said yesterday.

“Forming a commission is a very positive move, but it must be independent so that it can review the health of the industry neutrally and make recommendations accordingly,” the TIB said in a statement.

TIB’s reaction came a day after Finance Minister AHM Mustafa Kamal said the government is going to form a banking commission soon.

Different quarters, including the TIB have long been demanding for the establishment of a commission to check the health of the banking sector and take necessary reform measures. But the government has not paid heed to it.

In the statement, Dr Iftekharuzzaman, executive director of the TIB, said the conditions of the banking sector have been deteriorating because of lax regulations and influence of vested quarters. 

“Liquidity crisis has added further woes to the sector,” he said.

An independent commission comprising experts of the sector can only come up with effective recommendations, Iftekharuzzaman said.