Government must choose citizens over oligarchs

The syphoning of Tk 92,261 crore out of our banking sector through 28 major scams since 2008 is damning evidence of the government's failure to implement good governance in the sector, as well as the necessary reforms. According to the Centre for Policy dialogue, the amount is equivalent to around 12.1 percent of this fiscal year's total budget and 1.8 percent of the country's GDP size. The negative impact this has had on the economy is perhaps the most significant under the incumbent government since it assumed office in 2009.

In 2008, just prior to the Awami League coming to power, defaulted loans stood at Tk 22,000 crore. Today, the amount has exploded by more than seven times to Tk 156,040 crore. And that is without considering loans in special mention accounts, loans with court injunctions, and rescheduled loans, which could push it up many times more. The amount of irregularities we have witnessed in the sector over the years and the constant leeway—if not outright free passes—provided by the regulators, particularly the Bangladesh Bank, has destroyed any semblance of corporate governance among banks. Some banks have even demonstrated early signs of having liquidity issues. Given the current state of the sector and, even more worryingly, the lack of oversight of regulators, any crisis that may arise as a result could cause massive turbulence for the sector and the economy as a whole.

Since regulators—and those in government in general—are no longer accountable to the people, vested groups have been using them to frame policies and regulations that are beneficial to them. As a result, the "looting" of our banking sector has hugely contributed to the immense increase in inequality in the country since 2010.

While defaulted loans have been growing, capital flight from the country, as reported by many foreign research organisations, has been rising. This indicates that powerful oligarchs have been using the banking sector to rob the nation of significant wealth, which they have been laundering and stashing away abroad. The fact that this has been happening right under the noses of the concerned authorities—if not with their blessings—shows the lack of accountability that now signifies the state of governance in the country.

Since regulators—and those in government in general—are no longer accountable to the people, vested groups have been using them to frame policies and regulations that are beneficial to them. As a result, the "looting" of our banking sector has hugely contributed to the immense increase in inequality in the country since 2010.

It is high time that people raised their voices to make government officials accountable to the people once again. Without that, it is difficult to see the government—whose previous promises of reforming the sector have all proven to be hollow—sacrificing the interests of the oligarchs to make changes to the sector for the betterment of all citizens.