Transparency International Bangladesh (TIB) on Thursday raised concerns about whether the newly appointed Governor of Bangladesh Bank will be able to perform his duties independently, free from conflicts of interest.
The organization questioned how a readymade garment and real estate entrepreneur—who previously rescheduled loans for his own company under special consideration—would be able to carry out his responsibilities impartially as the central bank chief, ensuring inflation control, financial sector stability, and governance without corporate influence.
In a statement, TIB Executive Director Dr Iftekharuzzaman said the governor’s banking experience is “primarily related to being a borrower, later a loan defaulter, and subsequently benefiting from loan rescheduling under special consideration.”
He added that the appointee has also held influential roles in business lobbies, including in the garment and real estate sectors, as well as in ATAB and the Dhaka Chamber.
“The question is whether the governor, appointed in haste, will be able to fulfill public expectations of restoring order in a banking sector that fell into disarray during the authoritarian kleptocratic regime, while remaining free from the influence of business lobbies, borrowers, and loan defaulters,” he said.
Iftekharuzzaman noted that nearly 60% of Members of Parliament and 62% of cabinet members are primarily businesspersons, while around half of MPs are loan defaulters with outstanding recoverable loans at record levels.
“In such a context, how risky could the appointment of a loan-defaulting businessperson be for the banking sector?” he asked, also questioning what message the decision sends nationally and internationally.
Describing the move as unprecedented—the first time a businessperson has been appointed Bangladesh Bank Governor—he warned that it risks turning the central bank into an instrument of business lobbies dependent on defaulted loans and political connections.
He also questioned the prudence of appointing someone linked to the ruling party’s election management committee to lead the central bank.
Referring to the BNP’s election manifesto pledging banking sector governance, discipline, and transparency, he said appointing an individual with conflicts of interest contradicts that commitment.
TIB ED noted that the government is aware of the banking sector’s fragile condition under the previous regime, when partisan influence and facilitation of vested interests contributed to money laundering, rising defaulted loans, and economic vulnerability.
At a time when strengthening financial governance and attracting foreign investment are critical, TIB said the effectiveness of the appointment remains questionable.
He also questioned whether the new Governor would be able to independently control inflation, ensure financial stability, and take action against weak banks.
“The mass uprising of 2024 created public expectations for reform, including an independent central bank,” he said, adding that it remains uncertain whether Bangladesh Bank will function free from partisan and business influence under the new leadership.