Capital shortfall of government banks

Government banks are running acute capital shortfall of Tk 15,000 crore as reported in the media. In this backdrop, the government is once again going to replenish a partial shortfall amount of Tk 4,000 crore from the budget allocation. 

Seven government banks are so far running capital shortfalls. These trends hamper the banks' business relations with foreign banks, which become reluctant to engage in transactions with us. On the other hand, if the government continues to inject capital support from taxpayers' money, it will set a bad example and fuel further irregularities in the banking sector.  Instead of continuing this practice, it should be identified as to why government banks are facing capital shortfall once again, and apply remedies accordingly.

Mohammad Zonaed Emran

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