Staff Reporter :
The Transparency International Bangladesh (TIB) on Sunday voiced deep concern over the ongoing banking crisis, urging the government to announce a risk reduction policy in consultation with independent experts for bringing transparency and good governance in the country’s banking sector.
“The country’s banking sector is now undergoing through an unprecedented crisis as a result of loan scandals, misuse of power, political influence, poor governance and default culture. Subsequently, the banking regulator is trying to solve the crisis on an adhoc basis further deepening the crisis,” TIB Executive Director Dr Iftekharuzzaman said this in a statement on Sunday.
“Corruption in banking sector has put people’s deposit at risk,” he added.
Dr Iftekharuzzaman urged the government to form an independent expert committee to formulate a risk reduction policy and implement it to bring transparency and ensure good governance in banking sector.
“Recently, the central bank has formulated certain measures to check corruption and mismanagement at few public banks, Farmers Bank and NBRC Bank. But it is yet to find out root causes of corruption in these banks and even it fails to bring the culprits to book. This has created a confidence crisis among the depositors and no progress is in sight to rein in the default loans, fraud and corruption in banks,” he said.
The TIB Executive Director observes that the government has recently taken a move to amend Bank Company Act to bring the private banking sector under family control, which may put the banking sector at risk of being uncontrolled and guardianless.
Dr Iftekharuzzaman also urged the government to roll back its plan to amend Bank Company Act in the greater interest.
