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Political, financial miscreants have taken control of banks, says Ibrahim Khaled

  • Published at 01:23 am November 24th, 2017
  • Last updated at 12:24 pm November 24th, 2017
Political, financial miscreants have taken control of banks, says Ibrahim Khaled
Former Bangladesh Bank deputy director Khondkar Ibrahim Khaled has alleged that the banking sector is in danger because of undue influence that is being exerted by bank owners. “Political and financial miscreants have taken control of the banks’ ownership. As they have the money, it is easy to bring a bank under their control,” Ibrahim Khaled told a roundtable discussion on Thursday. Referring to a bank that has been operating without a managing director (MD) for the last nine months as three of its MDs were forced to step down successively, he said: “If this trend continues, the owner may find an MD by paying Tk2-3 lakhs, but they would not be able to find someone to operate the bank. The MDs would behave more like housemaids.” Ibrahim Khaled suggested that the bankers take help from the media to prevent the political coteries. The roundtable discussion, titled “Loan takeover in banks of Bangladesh: Is it a healthy practice?” was organised by the Bangladesh Institute of Bank Management (BIBM) at BIBM auditorium in Dhaka. A four-member research team led by BIBM Associate Professor Mohammed Sohail Mustafa presented the keynote paper. According to the study, 90% of bankers have expressed concern that the current situation of loan takeover in the banking industry is alarming. Irrational business target set by the board and the top management is responsible for malpractice in 60% loan takeover cases; and in 40% of the cases, borrowers switch over from one bank to another to get some undue benefits, shows the study. The study recommended that the bankers should think about long-term sustainability during the takeover of loans, taking into account both the positive and negative aspects of it.