Bangladesh Bank Governor Dr. Ahsan H. Mansur has announced a re-examination of all loans worth more than Tk 20 crore to restore discipline in the banking sector. He said that if irregularities are found, the concerned bank officials and board of directors will be held accountable.
Speaking at a seminar organized by the Economic Reporters Forum in the capital’s Paltan on Thursday, the governor said that it will be checked whether there is proper collateral against these loans. If necessary, the Anti-Corruption Commission will take action, and Bangladesh Bank will not interfere in it.
Stating that effective independence of the central bank is essential for banking sector reforms, he said that a proposal has been made to the government to enact international standards legislation. If the law is passed, the reform process will be easier.
The governor said the process of merging five weak banks is progressing rapidly and a decision has been taken to liquidate nine financial institutions. He also assured that general depositors will get their money back in full.
Admitting that the actual rate of defaulted loans has reached about 36 percent, Dr. Mansur said that a forensic audit will be conducted to find irregularities in large loans. He also emphasized on reducing bank dependence and developing the bond market.
Speaking at the event, CPD Executive Director Fahmida Khatun said that the upcoming elections are an important opportunity for banking sector reforms. Political parties need to have a clear commitment in this regard in their manifestos.