That the government is expected to put forth a budget that will see a huge injection of funds into state-run banks is understandable given the circumstances, but it should have never gotten to this point.
State-run banks play a huge role in our economy. Sonali Bank is currently the largest commercial bank in the nation. Unfortunately, despite its inefficiencies, and with government backing, it has been allowed to grow to a point where it has become too big to fail.
Enter the aforementioned financial bailout.
One of the major reasons behind these public institutions facing a capital shortfall has been cited as the financial scams, such as the Hall-Mark incident, that have plagued the public banking system. In both instances bank officials were allegedly complicit.
This forces us to revisit the question of accountability and efficiency in our state-run financial institutions. This kind of efficiency and accountability is significantly easier to achieve in the private sector, where there is less bureaucracy and more opportunities, both internal and external, for proper regulation.
So, it may be time for the government to consider privatisation of these banks, or corporatisation at the very least. Our public financial institutions are mired in red tape and corruption, and the performance of the private banking sector tells us that an alternative does exist.
We must explore such alternatives so that these institutions can no longer take advantage of the public through these "free passes" they will probably receive.