'Oligarchs, monopolists have gripped banking sector'

 
The financial oligarchy under crony capitalism in Bangladesh is using banks as vehicles to fulfill their goals, said Dr. Fahmida Khatun, Executive Director of Centre for Policy Dialogue (CPD). She made the remark in a dialogue titled "What Lies Ahead for the Banking Sector in Bangladesh?", organized by the CPD at La Vita Hall, Lakeshore Hotel on Thursday.

Presenting a paper, Dr. Fahmida Khatun said that the total volume of non-performing loans (NPL) has more than tripled in the last ten years, from Tk 42,725 crore in the fourth quarter of fiscal year 2011-12 to Tk 1,45,633 crore in Q2 of FY24.

However, the actual amount of NPL will be much higher if loans in specially mentioned accounts, with court injunctions, and rescheduled loans are included.

She also said that people are now withdrawing money from banks as massive irregularities in the banking sector have eroded their trust.

The CPD suggested the autonomy of the central bank should be upheld in line with the Bangladesh Bank Amendment Bill 2003.

Dr. Fahmida Khatun stated that banks in Bangladesh do not upload latest information about their financial status and decisions on their websites. Even Bangladesh Bank, the country's central bank, does not play any effective role to ensure the unbarred flow of information about the banking sector to depositors and media outlets. As a result a group of oligarchs and monopolists have now gripped the banking system in Bangladesh and competition has been drastically cornered, Dr. Fahmida Khatun added.