Published: 12:01 AM, 07 October 2026
Financial Regulators Must Work Without Fears or Favours
A strong and stable financial sector is essential for the economic development of any country. In Bangladesh, banks, non-bank financial institutions, insurance companies and capital markets play a vital role in mobilizing savings and financing businesses and industries. However, the effectiveness of the financial sector largely depends on the independence, professionalism and accountability of its regulators. Financial regulators must therefore work without fears or favours.
Regulatory institutions are responsible for ensuring discipline, protecting depositors and investors, preventing financial crimes and maintaining confidence in the financial system. If regulators fail to take action against powerful individuals or institutions because of political pressure, personal influence or other considerations, the consequences can be serious. Weak regulation may encourage loan default, financial irregularities, market manipulation, money laundering and misuse of public money.
Bangladesh has witnessed concerns over irregularities in the banking and financial sectors over the years. Large amounts of money can become stuck as non-performing loans when borrowers receive funds without proper assessment or influence is used to avoid repayment. Ordinary depositors and taxpayers ultimately bear the burden of such failures. This situation demonstrates why regulators must be able to perform their duties independently and impartially.
The Bangladesh Bank and other relevant regulatory bodies should be given sufficient institutional independence, skilled manpower, modern technology and adequate resources. At the same time, independence must be accompanied by accountability. Regulators should follow clear laws and regulations, publish important decisions and remain answerable to the public and appropriate oversight institutions.
There should be no double standard in applying financial laws. A small borrower or ordinary investor should not face stricter treatment than a powerful businessperson or influential institution. Rules must apply equally to everyone. Regulators should investigate suspicious transactions, insider trading, loan fraud and other financial offences promptly and transparently, regardless of the identity or influence of those involved.
The government also has an important role to play. It should create an environment in which regulators can perform their duties without political interference. Recruitment and promotion within regulatory institutions should be based on merit, competence and integrity. Whistleblowers who expose serious financial wrongdoing should also receive appropriate protection.
