When it comes to the problems plaguing our banking sector, there is no point beating around the bush.
Our banks have repeatedly failed to comply with industry regulations, resulting in huge amounts of bad debt, which could bring the country to the verge of financial catastrophe.
However, the blame does not lie with certain delinquent banks alone.
Bangladesh Bank has, through its laxness, failed to enforce its regulations, especially on new banks. For one, since 2012, the new nine banks which have set up shop have not yet fulfilled their conditions set by BB, and have continued to operate regardless.
We must ask: Why has this been allowed to continue?
Is it any wonder, then, that the Centre for Policy Dialogue has dubbed last year to be the year of “the banking scam”?
We have seen banks continue to provide loans without thorough checks, because of political will and favour, resulting in a whopping Tk80,000 crore in bad debts.
It is no surprise, then, that it has been found that most of these loans belong to the nine new banks that have come into operation since 2012.
For the government to put CPD under fire for speaking the truth is uncalled for.
CPD’s intention is not to criticise the government, but to ensure that our banking sector does not reach a situation where the entire economy is crippled by their bad practices.
According to reports by the Dhaka Tribune, these banks continue to function without interference because of political backing.
Is this the kind of “progress” these ministers have been speaking of, where knowing the right kind of people allows you to function as you please, putting the entire nation’s economy at risk?
It is all well and good that the economy is growing, but a stable banking sector is imperative to ensure that we are not met with disaster on the road ahead.
We do not need more excuses and shifting goal posts. BB needs to rein in the banking sector before it is too late.