Political intervention is destroying banks: Prof Abu Ahmed

 
Professor Abu Ahmed of Economics Department, Dhaka University has said that political intervention is destroying the banking system in Bangladesh. Abu Ahmed made this remark on Thursday while speaking to journalists.

Abu Ahmed further said that the condition of some state-owned and private banks have become so vulnerable that it would be very difficult to rescue these banks from their existing perils. Abu Ahmed blamed the regulatory authorities and the banking administration for being unable to recover defaulted loans from influential borrowers. At the same time Abu Ahmed said that the authorities concerned have not yet unfolded a full list of top borrowers.

Abu Ahmed told reporters that some unscrupulous borrowers who are closely associated with the government have gobbled up huge sums of loans from different banks and have become defaulters intentionally. As a result a broad number of banks have reached the verge of devastation.

Loans are being disbursed through political lobbying to people who have power but no honesty, Abu Ahmed stated. Moreover, he commented that the people who are appointed in the board of directors of banks are also politically selected. Abu Ahmed added that the government must not compromise with loan scammers and financial fraudsters over corruption and irregularities in banks and financial institutions.

>>Agency