• Saturday, Oct 23, 2021
  • Last Update : 12:22 am

Don’t bank on it

  • Published at 06:30 pm October 15th, 2018
Banking
Bigstock

We urge the government to hold the public banks to the same standards as private banks

Banking is the backbone of any modern economy, as it essentially facilitates the operation of the entire system. Wherever money goes, everything else follows. As such, the development and direction of our nation depends on it.

Which is why it is so disappointing to see once again that Janata Bank, one of the country’s largest state-owned banks, continues to show no progress in recovering from massive losses, making one financial blunder after another.

The bank has been under fire for a while now, for issuing bad loans, failing to comply with regulations when it lent over Tk10,000 crore to two organizations, and facing capital shortfalls and incurring losses. 

Default loans of the bank also stood at 22% of its total loans, at Tk9,879cr, and given the recent track record, there is little confidence that these numbers will show signs of improvement any time soon. Additionally, Janata has also incurred a massive loss of Tk1,600cr in the first six months of the year.

For a country such as ours, on the cusp of turning a corner, shedding our LDC tag, and truly accelerating towards becoming a middle-income nation, such financial catastrophes will only hinder our progress.

The burden of such financial irresponsibility will ultimately fall on ordinary citizens -- either directly on the tax-payers, who are already bending over backwards in supporting 160 million people, or indirectly, through myriad other ripple effects.

So, we urge the government to hold the public banks to the same standards as private banks -- the country’s future depends on it.

55
Facebook 51
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail