The government rescue package from the national budget to compensate a number of state-owned banks riddled with corruption is unethical, former deputy governor of Bangladesh Bank khondkar Ibrahim Khaled said yesterday.
He added that recently, an unusual corruption has crippled two state-owned banks – Sonali Bank and BASIC Bank.
Khaled was addressing a session on the second day of Annual Banking Conference 2015.
Bangladesh Institute of Bank Management (BIBM) hosted the event in the capital.
The former deputy governor said the government has provided capital from tax payers’ money to the banks. This is unethical and this raised public criticism, opined the former banker.
Sonali Bank, a large organisation, could survive without budgetary support, but BASIC would definitely collapse without such intervention, he opined.
He said many consider such action of the government a kind of financing for corruption.
The Bank Company Act empowers the central bank to remove directors from banks, but at the same time restrains the authorities concerned to remove directors appointed by the government.
Khaled blamed such legal anomaly for unusual corruption and looting of customers money.
Twelve research papers on different subjects were presented at the closing day of the annual conference.
The shocks of recent financial scam undoubtedly raised questions on the competence of the governance practices in banking system, said SK Sur Chowdhury, deputy governor of Bangladesh Bank.
He admitted that these scams suggest lack in operational efficiency of banking system.
