Published: 07:32 AM, 08 June 2026
Reform commission on cards to streamline banking sector: Swapon
Information and Broadcasting Minister Zahir Uddin Swapon said the government will take required measures to bring the inflicted banking sector under a reform commission to restore financial stability through addressing the longstanding governance weakness in the industry.
"Commissions have already been formed for media, anti-corruption and administrative reforms. Why should a sector as important as banking remain beyond the scope of reform? We will certainly do it," the minister said while speaking as the chief guest at a seminar.
Economic Reporters' Forum (ERF) arranged the seminar titled "Good Governance in the Banking Sector and the Role of the Media" at ERF auditorium on Sunday. ERF President Doulot Akter Mala chaired the discussion while its general secretary Abul Kashem moderated it.
The minister said the issue of governance in the banking sector cannot be viewed in isolation. According to him, discipline and accountability cannot be established in the sector solely through media scrutiny unless broader governance is ensured across the state and political system.
The minister alleged that the the state-owned statistical agency Bangladesh Bureau of Statistics (BB) had been used as political tools in the past political government regime and that information was manipulated and falsified to conceal the actual situation.
"Such changes to information and performance-related statistics would not have been possible without state patronage," he said.
Referring to the country's economic development, Mr Swapon said the expansion of the private sector had taken place in continuation of the economic liberalisation initiated by former President Ziaur Rahman.
He also called for strengthening the capital market to reduce excessive dependence on banks as the primary source of financing.
The minister further alleged that the same groups responsible for misappropriating bank deposits had also siphoned off money from small investors in the stock market.
Speaking at the seminar, United Commercial Bank (UCB) Managing Director and Chief Executive Officer Mohammad Mamdudur Rashid said the country's banking sector remains under significant financial pressure, largely due to governance deficiencies.
"Like many other banks, UCB is also facing financial stress. The principal reason behind this pressure is the lack of good governance," he said, adding that institutions maintaining sound governance practices have been better able to withstand adverse conditions.
Editor of Financial Express Shamsul Huq Zahid said good governance in the banking sector cannot come alone unless it is ensured in the state administration.
If good governance is ensured in the state administration, he said, it will be transmitted to the central bank and the commercial banks respectively.
"We have seen observing that the highest level of the government is trying to bring back governance in the state machineries but other team members of the government need to come up. Then we'll see some outcomes," he said.
He highlighted the importance of forming reform commission for the banking sector like other areas. "We'll understand how serious the government is in terms of bringing good governance in the sector in the coming days."
Director General of Bangladesh Institute of Bank Management (BIBM) Dr. Ezazul Islam said national banking commission was formed in 1985 when the ratio of non-performing loans in banks crosses 40 percent and various reform activities were taken in the early 90s when the BNP (Bangladesh Nationalist Party) was in power.
The opportunity comes again for the political party in bringing necessary reforms to restore discipline in the sector. "I do believe this government will do it again as the finance minister repeatedly saying that the focus of the government is establishing accountability, deregulation and institutional capacity buildup," he added.
BB Deputy Governor Nurun Nahar said accountability, transparency, responsibility and fairness are the four pillars for ensuring good governance and all the stakeholders need to step up to this effect.
She said the banking sector currently faces difficult time because of the failure of performing responsibilities that were required.
Policy Exchange Bangladesh Chairman Dr Masrur Riaz, and Professor Dr. Md. Shahidul Islam Zahid of the Department of Banking and Insurance at the University of Dhaka and Professor Dr. Sayema Haque Bidisha of the Department of Economics in the same university, among others, also spoke at the discussion.
