• Saturday, Nov 17, 2018
  • Last Update : 02:05 am

Please stop coddling state-owned banks

  • Published at 07:34 pm November 8th, 2018
Banks
BIGSTOCK

Time and again, our government keeps bailing out these loss-making institutions, straining the public coffers

A stable, effective, and efficient banking sector is imperative for a country’s development, but unfortunately, state-owned banks in Bangladesh have a terrible track record, and they show little sign of changing their ways.

A recently concluded conference at the Bangladesh Institute of Bank Management revealed a number of issues, chief of which is how SOBs continue to be a burden on the rest of the financial sector.

In detailing the problems, the conference highlighted the necessity for good governance, which is, sadly, lacking in our banking culture.

Additionally, the increase in willful defaulters and non-performing-loans continue to cripple the already fragile financial sector.

But what is truly needed is a systemic change, to address the complacency that seems to have settled within our state-owned banking system.

Time and again, our government keeps bailing out these loss-making institutions, straining the public coffers, and emboldening these banks towards further irresponsible behaviour.

How much longer must we keep propping up these inefficient organizations?

As a country striving to reach middle-income status, about to turn the corner, and with a vision to move towards a golden period of development and prosperity, this simply will not do.

We are in dire need of a change, and of revamping the archaic practices that seem to be the norm right now in our banking sector.

Enough is enough -- how much will we allow these white elephants to keep draining our resources, when public money can be better spent in so many other areas?