Tightening family grip on private banks

The Daily Star published a news report titled “Family grip on private banks to tighten” on January 17. The report explained how the recent amendment to the Banking Companies Act gives the owning family near-absolute control of the bank. In my opinion, the government's hands-off approach in dealing with private banks is both reckless and dangerous.

We must remember that a private bank is not an ordinary family property. While a family might own a bank's infrastructure, a bank holds its clients' deposits which aren't part of the owning family's assets. That is why there should be a check-and-balance of power within the bank.

The government cannot afford to expose banks to the total control of a particular group of people such as the owning family. At a time when the entire nation is reeling from the shocking developments in the banking sector, the tightening of the grip of families on banks does not raise the confidence of depositors.

The government must protect the interest of the ordinary depositors. The recent amendment to the Banking Companies Act does exactly the opposite by handing over enormous power to a select group of people.

Tahfim Ahsan, By email