Subsidy in banking sector to avoid disaster: Muhith

Finance Minister AMA Muhith today told parliament that the government has given subsidy to state-run banks in a bid to avoid any possible disaster in banking sector.

“Banking sector is very sensitive. If any disaster takes place in a bank that will put adverse impact on all. That’s why we take the steps,” Muhith said in reply to blistering attack by opposition Jatiya Party and independent MPs.

Participating on the cut motion, the JP and independent lawmakers lambasted Muhith for widespread corruption and irregularities in state-run banks.

They also said currently banking sector is in critical condition as money of private banks is being laundered by the relatives of the respective bank directors, who are also loan defaulters.

On the criticism that the government is giving subsidy to banks without any reasons, Muhith said this allegation is not correct.

Meanwhile, the finance minister proposed to grant Tk 53,833 crore for finance division to meet the development and non-development works till June 30 2018. But participating on the cut motion MPs opposed the proposal.

In face of the lawmakers’ criticism that private banks have turned into a family business as the government has increased number of directors [comprising of family members of bank directors], Muhith said, “I will be able to let you know about the government’s stance in this regard on getting the report.”

Amid criticism that there is no good governance in banking sectors, Muhith said his government is working very seriously for ensuring good governance in banking sector and money market. “And you all can see the result,” Muhith said.