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Muhith: Banking sector is not perfect

  • Published at 10:44 pm January 18th, 2018
Muhith: Banking sector is not perfect
The finance minister has said that the banking sector in the country is not perfect, and the government is trying its best to bring effective change. In response to a private member's motion raised by ruling party MP Israfil Alam on Thursday, AMA Muhith said the irregularities and faults of Bangladeshi banks had began at the country's birth. “They got to a critical level at one point. At one time, default loans were at 40%, and now it is 11-12%, which is still double digit,” he said. Israfil Alam in his motion proposed that transparency and accountability be ensured to force banks and financial institutions to eliminate irregularities. In response, Finance Minister Muhith described the various measures the government had taken to ensure governance in the financial sector. “In 2013 the government amended the banking laws. This is an ongoing process. Two days ago we passed another amendment,” he said. Israfil mentioned National, AB, NRB Commercial and Farmers Banks and said: “Many many successes of the government have paled under the chaos from the banking sector. I cannot say that the government has not tried, but the people who are in charge of enforcing the rules have failed. “The government and the parliament had to take responsibility for this.” “Of the 57 banks, 20 are in visible crisis. Loans were handed out to anyone, real and fake. Senior bank officials and directors were involved. There is no need for investigation, this is all clear as daylight and people know everything,” he said. “The government, the ministry and the central bank have failed to take effective, exemplary action.” The new banks have failed to gain the confidence of investors, and the state-owned banks have an alarming rate of default loans, he said. “Despite the looting, the government is providing them with billions in capital, which is the public's hard-earned tax money,” he said. After his response, the finance minister requested the MP to withdraw the motion, which he did. This article was first published in banglatribune.com