Bid against bad bank reporting criticised

Transparency International Bangladesh today hit back sharply over banks seeking state protection against “negative reporting on the banking sector”.

It said, corruption will take an acute turn if the proposal of the banks is accepted. Terming the demand “illogical,” TIB said: “The move will protect the corrupt, and all the while encourage graft in the sector”.

TIB Executive Director Iftekharuzzaman said the proposal goes against the public interest and called upon the government as well as the Bangladesh Bank to reject it, said a statement issued this afternoon.

Though these banks are run privately, the sector is truly dependent on the public money. The people have a right to know about negative information like corruption and irregularities alongside the positive reporting, Iftekharuzzaman said.

On Friday, Bangladesh Association of Banks (BAB), a forum of bank directors, in a meeting with Finance Minister AMA Muhith submitted a nine-point proposal including protection from the government against what they say is negative reporting in the banking sector.

Iftekharuzzaman criticised the proposal sharply, the statement said.

"Such type of proposal cannot be accepted under any circumstance. People did not allow the banking sector to hide information and create such scope for irregularities and graft," he said.

Saying that there is a necessity of the Banking Reporting Act, Iftekharuzzaman said such law cannot be an obstacle to publishing reports on corruption, irregularities and financial scams in the sector.

The country's banking sector is passing through a setback due to some hasty decisions given by a vested quarter, he said. "I urge the government not to push the banking sector towards the verge of an absolute collapse after being influenced by the vested quarter."

He also underscored the need for forming a neutral advisory committee comprised of relevant experts to undertake an effective step for eliminating crisis in the banking sector.

To make the efforts a success, he also stressed the need for formulating short, mid and long-term strategies to ensuring participation of the stakeholders in the process to better the situation.