Published:  02:26 AM, 13 October 2017

Bank sector lacks good governance

The banking sector of the country is facing the lack of good governance helping increase irregularities in the sector,
speakers said. They said the management including board of directors of banks are taking undue advantages using political influence. As a result, the sector cannot overcome irregularity.

They said this at a seminar titled "Exploratory Mergers and Acquisition in the Contest of the Banking Sector" at Bangladesh Institute of Bank Manage-ment (BIBM) in the city yesterday.

According to BIBM research, over 72 percent of bank officials think the number of existing banks in the country is more than the economical ability. For this reason, the number of banks should be reduced. 

About 11 percent bankers think, the current number of banks in the country is absolutely appropriate as the economic development of the country is on the rise. And 17 percent of the bankers declined to comment on this issue.

BIBM director and Professor Mohiuddin Sid-dique presented a research report. Bangladesh Bank (BB) Deputy Governor SK Sur Chowdhury was present as the chief gust at the  mfunction chaired by BIBM Director General Toufiq Ahmad Chowdhury.

Sur Chowdhury said, a number of banks and other financial instutions in the world including development countries are going to the merger system. This is a new idea in Bangladesh.  mThe central bank is ready to introduce the merger system. They are making guidelines in this regard, he said.

Khandaker Ibrahim Khaled, the former deputy governor of Bangladesh Bank said merger is widely taken place in several countries. Merger system is getting popular as a number of foreign banks and other institutions are going to introduce the new initiative for the expansion of business.

Yeasin Ali, former executive director of Bangladesh Bank said if the government cannot run the state-owned banks in a proper manner, these should be handed over to the private sector.

He further said, in recent times, corruption has increased in a tremendous manner at the state-owned banks. For reducing the irregularities in the state-owned banks, the government should take necessary steps which will help cut 80 percent corruption in the financial sector.


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