Despite rising interest rates on deposits and various efforts by the central bank, Bangladesh’s banking sector continues to face a liquidity crisis that has hamstrung some lenders.
The regime-sponsored immorality to protect or pamper the financial gangsters not only eroded the future of the banking sector, but also made the wound too difficult to recover from.
Traditional contractionary policies may not be suitable for Bangladesh’s unique economic structure.
The Bangladesh Bank is working to formulate a “Bank Resolution Act” for mergers, acquisitions, liquidation or recapitalisation of banks.
Restoring trust in the banking sector is crucially important
We hope that the BB governor will continue the momentum and spirit to bring order and promote the economy.
Good governance and adequate legal infrastructure—relevant laws, courts and impartial judges—need to be established.
But its objectives must be clearly defined and regularly scrutinised
Several banks in Bangladesh are clinically dead but are being kept alive through bailouts, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).
Despite rising interest rates on deposits and various efforts by the central bank, Bangladesh’s banking sector continues to face a liquidity crisis that has hamstrung some lenders.
The regime-sponsored immorality to protect or pamper the financial gangsters not only eroded the future of the banking sector, but also made the wound too difficult to recover from.
Traditional contractionary policies may not be suitable for Bangladesh’s unique economic structure.
The Bangladesh Bank is working to formulate a “Bank Resolution Act” for mergers, acquisitions, liquidation or recapitalisation of banks.
Restoring trust in the banking sector is crucially important
We hope that the BB governor will continue the momentum and spirit to bring order and promote the economy.
Good governance and adequate legal infrastructure—relevant laws, courts and impartial judges—need to be established.
But its objectives must be clearly defined and regularly scrutinised
Several banks in Bangladesh are clinically dead but are being kept alive through bailouts, said Fahmida Khatun, executive director of the Centre for Policy Dialogue (CPD).
Recover bad loans, punish those who exploited the sector
