Consequence of corruption, irregularities

Published:  03:18 AM, 30 September 2021

Finance Minister for merging BASIC & Padma Bank

Finance Minister for merging BASIC & Padma Bank
Finance Minister AHM Mustafa Kamal has opined that BASIC Bank and Padma Bank should be merged with each other. AHM Mustafa Kamal made this remark at a press briefing after a meeting with the Cabinet Committee on Financial Affairs and the Cabinet Committee on Government Purchase on Wednesday. AHM Mustafa Kamal further said that a draft is being made on the merger of BASIC Bank and Padma Bank and an amendment will be made to this end as well.

Padma Bank has applied for merger with a state-owned bank. AHM Mustafa Kamal said, "I have not yet received the application. State-owned banks are engaged in the ownership of Padma Bank. There are shares of Sonali Bank and Rupali Bank. We will certainly look into the matter so that these two banks can be merged properly for their betterment."

According to AHM Mustafa Kamal, the officials of Padma Bank could not run the bank in the right way initially. There have been a lot of corruption and irregularities, AHM Mustafa Kamal stated. Legal procedure is going on against the people who are involved in these graft and anomalies, the Finance Minister informed journalists. Some of the people responsible for corruption in Padma Bank are now in prison, AHM Mustafa Kamal added. AHM Mustafa Kamal remarked that the government is looking after the monetary safety of the shareholders and depositors of both banks so that people who deposited money in these banks do not face trouble. That's why these banks are being sustained by the government, AHM Mustafa Kamal said while answering a question from a reporter.

It should be noted that deposits by ordinary people are fifty to sixty times higher than the paid up capital of a bank. For this reason, ensuring the financial security of depositors is indispensable, according to economists.

Bangladesh Bank's former Governor Dr. Salehuddin Ahmed said, "Just merger is not enough. People who have plundered money from banks in different tricky ways should be prosecuted."

President of Bangladesh Economics Association Professor Dr. Abul Barkat said, "The regulatory authorities have totally failed to establish good governance and accountability in banks. For this reason graft and anomalies are happening frequently in banks and financial institutions. The government should come up with tough measures to this end."

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