Kazi Zahidul Hasan :
Bangladesh Association of Banks (BAB), an association of private bank owners, has sought Finance Minister’s intervention to stop the ‘negative’ media reports on banks.
The Association urged the Finance Minister AMA Muhith to take necessary steps in this regard in a recent letter, signed by its President Nazrul Islam Majumder.
Majumder in his letter proposed to set up an organization to scan and stop news stories on loan
scandals and credit card fraud. “Negative media publications may create fear among public and customer may lose trust on banks,” read the letter, adding, “To prevent negative media publication, an organization can be established through promulgation of the Financial Information Act under the Finance Ministry and Bangladesh Bank.”
“The organization will be run by the Ministry of Finance and supervised by the Central Bank. The initiative would be helpful in building public confidence on banks,” it added.
BAB came up with the call when media outlets were carrying out news stories on loan frauds at commercial banks on regular basis referring to the central bank’s investigation reports, on various banks on various occasions.
“Media is revealing bank’s loan scandal on a regular basis which cretes panic and fear among the people. They (people) are losing trust and confidence on the banks due to such adverse media campaign,” an office bearer of BAB told The New Nation, seeking anonymity.
He said people’s trust is key to banking business. If they feel unsafe to keep their deposit in banks it may bring serious adverse impact on the whole banking sector.
Referring to the Farmers Bank case, he said, “Depositors rushed for withdrawing their funds from the bank following news stories of loan scandals there.”
“People have lost confidence on the Farmers Bank. It is now struggling to attract deposit even if offering high deposit rates. A similar situation may happen to other banks if media continues to break news on their loan irregularities,” he added.
“We need protection and security of all legal deposits with scheduled banks to increase confidence of public. So, we want the government intervention to prevent negative media report on banks.”
Nazrul Islam Majumder could not be reached for comments despite several attempts on his cell phone.
Opposing the BAB’s move, former Bangladesh Bank Governor Dr Salehuddin Ahmed said, “The initiative to stop media reports on loan scams and banking irregularities is not a good sign.”
“If the Minister endorses the move, it will impair bank’s fair lending practices and transparency of the bankers,” he added. Dr Salehuddin Ahmed also said that there is no logic to form a separate organization to stop the negative news of the bank. There is a law for propaganda in the press and action can be taken for such acts under the Press Council Act.
Bangladesh Association of Banks (BAB), an association of private bank owners, has sought Finance Minister’s intervention to stop the ‘negative’ media reports on banks.
The Association urged the Finance Minister AMA Muhith to take necessary steps in this regard in a recent letter, signed by its President Nazrul Islam Majumder.
Majumder in his letter proposed to set up an organization to scan and stop news stories on loan
scandals and credit card fraud. “Negative media publications may create fear among public and customer may lose trust on banks,” read the letter, adding, “To prevent negative media publication, an organization can be established through promulgation of the Financial Information Act under the Finance Ministry and Bangladesh Bank.”
“The organization will be run by the Ministry of Finance and supervised by the Central Bank. The initiative would be helpful in building public confidence on banks,” it added.
BAB came up with the call when media outlets were carrying out news stories on loan frauds at commercial banks on regular basis referring to the central bank’s investigation reports, on various banks on various occasions.
“Media is revealing bank’s loan scandal on a regular basis which cretes panic and fear among the people. They (people) are losing trust and confidence on the banks due to such adverse media campaign,” an office bearer of BAB told The New Nation, seeking anonymity.
He said people’s trust is key to banking business. If they feel unsafe to keep their deposit in banks it may bring serious adverse impact on the whole banking sector.
Referring to the Farmers Bank case, he said, “Depositors rushed for withdrawing their funds from the bank following news stories of loan scandals there.”
“People have lost confidence on the Farmers Bank. It is now struggling to attract deposit even if offering high deposit rates. A similar situation may happen to other banks if media continues to break news on their loan irregularities,” he added.
“We need protection and security of all legal deposits with scheduled banks to increase confidence of public. So, we want the government intervention to prevent negative media report on banks.”
Nazrul Islam Majumder could not be reached for comments despite several attempts on his cell phone.
Opposing the BAB’s move, former Bangladesh Bank Governor Dr Salehuddin Ahmed said, “The initiative to stop media reports on loan scams and banking irregularities is not a good sign.”
“If the Minister endorses the move, it will impair bank’s fair lending practices and transparency of the bankers,” he added. Dr Salehuddin Ahmed also said that there is no logic to form a separate organization to stop the negative news of the bank. There is a law for propaganda in the press and action can be taken for such acts under the Press Council Act.
