TGN Desk:
Banking sector reforms are not possible without an elected government, said Dr. Salehuddin Ahmed, Adviser on Finance, Science, and Technology. He stated, “Reforming the banking sector is a time-consuming matter. We won’t be able to do it now. The elected government will carry it out.”
He made these remarks on Saturday (July 5) while responding to journalists’ questions after a meeting with government officials at the Nabinagar Upazila headquarters in Brahmanbaria.
Dr. Salehuddin Ahmed said, “During the tenure of the previous government, many people laundered a huge amount of money abroad. They destroyed the banks. Such incidents have not happened in any civilized country in the world.”
He added, “Recently, Bangladesh Bank provided financial support of Tk 52,000 crore to 12 financially weak banks. Before that, Tk 22,000 crore had been given. We are trying to restore discipline in the banking sector, but this is not a permanent solution.”
The former Governor of Bangladesh Bank further said, “If the interest rates of savings certificates are increased, everyone will prefer to buy those instead of keeping money in banks. Banks rely on liquidity. We have to maintain a balance. If everyone buys savings certificates, where will the banks get money from?”
When asked whether the banking sector could be freed from crisis before the upcoming national election in February, he said, “Bangladesh Bank is trying to rehabilitate weak banks. Islami Bank is a significant example in this regard. Public confidence in this large private sector bank has been restored. A law has also been enacted — the Bank Resolution Act.”
He continued, “The first condition of this law is that the government is committed to returning the money deposited by customers. No one’s money will be lost — it may take time. Some banks may not have viable business models, and they may need more time. These are being assessed, and we are taking technical assistance on how to evaluate them.”
During the event, Brahmanbaria Deputy Commissioner Mohammad Didarul Alam, Additional Police Superintendent (Nabinagar Circle) Piyash Basak, Nabinagar Upazila Nirbahi Officer (UNO) Rajib Chowdhury, Officer-in-Charge Shahinur Islam, and other administrative officials, along with print and electronic media journalists, were present.
