Bangladesh Bank governor Dr. Ahsan H Mansur on Sunday said that failures were more prominent than achievements in the banking and financial sectors, and a single group or individual could not be held responsible for the failures, but everyone is more or less in this regard.
The central bank governor made this remark while inaugurating the golden jubilee celebration of the Bangladesh Institute of Bank Management (BIBM) in the capital.
“There is no doubt that the banking sector of Bangladesh has progressed a lot. On the other hand, it must also be said that despite our achievements, there are many failures regarding how far the banking sector or the entire financial sector could have gone.”
He also thinks no single group or person can be solely blamed for these failures.
“The failure in the banking sector cannot be attributed to a single group or person alone; rather, the responsibility is shared by all involved parties to some extent.”
Ahsan H Mansur also hoped that the financial institutions will play a stronger role in financing the nonconventional and new sectors:
“The banks are not so much interested in financing some nonconventional sectors like SMEs and new sectors like climate financing and green financing.”
“Money has been given for many sectors, but that money is not being transferred. Those running banks and financial institutions are not enthusiastic about these sectors or unwilling to take risks. We need to change our mindset here,” he explains.
Dr. Mansur, also the BIBM Governing Board Chairman, asked the BIBM to work on the banking sector’s new challenges like climate financing, green financing, developments in the financial sectors, and technological innovations.
“The banking sector will quickly turn around. This sector will rise. Protection of depositors and investors must also be ensured,” the governor said.
Like BIBM, noting such institutions are necessary for the development of the banking sector, he said BIBM has played an important role in building human resources in this sector.
The governor also asked the BIBM to pay attention to attracting foreign students and spreading its name and fame to the international arena.
Mashrur Arefin, MD and CEO of The City Bank, said: “BIBM is the basis for building good institutions and officials. From here, one can learn all aspects of the financial sector, including corporate governance and loan disbursement.”
City Bank officials received 17,028 hours of training from BIBM in 2024. The BIBM is not standing still. It is changing with the times, he informed.
BIBM director general Md Akhtaruzzaman chaired the inaugural session. He said, “We have tried to successfully keep our commitment for 50 years.”
He also stated: “We conducted research with various organizations, including IFAC (International Federation of Accountants) and the World Bank. BIBM has shown its capabilities in many areas.”
Presenting a research paper, Dr. Shah Md Ahsan Habib, chair of the organizing committee, said: “It is undeniable that the economic sector of Bangladesh is still dependent on the banking sector for short, medium, and long-term financing. The current situation of non-bank financial institutions and the capital market in the country is not conducive to the development of the banking sector. The entire financial sector needs to be considered for banking reforms.”
The BIBM was established in 1974 with the primary objective of providing training to the officials of banks and financial institutions in Bangladesh, to enhance and update their skills.
