The ongoing crisis has been caused by the last one and a half decades of grand-scale deviation of governance in the banking industry.
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
Recover bad loans, punish those who exploited the sector
A recent study was carried out to discover the factors that may cause bank run in Bangladesh.
Its lack of independence has had disastrous effects
A longstanding political issue has now evolved from a financial concern to a structural problem in Bangladesh, according to noted economist Prof Rehman Sobhan.
Bangladesh’s banking sector is bearing the brunt of the political bias towards the wealthy and the influential, experts said.
Three lawmakers in parliament yesterday blasted the government for the sorry state of the banking and financial sector.
Economists are always noted for telling unpleasant truths because they go by numbers, research, theory, and judgement. Rarely do politicians—who can manufacture arguments to suit their purpose—endorse economists who are objective. Former Bangladesh Bank Governor Dr Mohammad Farashuddin has unvei
The merger guideline for banks and financial institutions is being hailed as a major step towards fixing the problem in the financial sector, which has been weighed down by massive default loans and weak corporate governance.
Bangladesh Bank deserves credit for forging the deal of signing the MoU between EXIM Bank and Padma Bank on March 18.
Report on NRBC Bank shows how chaotic the banking sector has been
