The government keeps bailing out loss-making state-owned banks, hoping things will change.
But they never do.
The Finance Ministry’s government order to disburse Tk2,000 crore for the recapitalisation of five banks is a yet another terrible move, and will only be a drain on public coffers.
What makes it all the more unacceptable is that the ailing BASIC Bank has already received Tk2,390cr over the past five years under the government’s recapitalisation program.
Time and again, irregularities, embezzlement, and loan scams are met with special treatment, with the tax-paying public footing the bill.
This approach of coddling constantly loss-making SoBs is not in the best interest of the public contrary to what the finance minister would like us to believe.
These bailouts, while calling themselves recapitalisation programs, do nothing more than perpetuate a cycle of incompetence and endless losses.
Private banks have outperformed SoBs in every aspect -- not only do they consistently demonstrate greater efficiency, they are also free from political influence and corruption that plague state-owned banks.
Enough is enough. BASIC Bank and other underperforming SoBs should be made an example of -- the government should do this by winding down their assets instead of propping them up.
Right now, SoBs are too comfortable in the knowledge that the government will bail them out no matter what they do, as well as deal leniently with corruption in the banking sector.
The impunity for this kind of disastrous mismanagement must end.