Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Monday, December 18, 2017 08:53:50 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Insolvency plugs private sector banks

By
02nd-Dec-2017       
Comments
Share your thought
Post a comment »
Read all () »

AFTER Farmers Bank's debacle failing to clear checks for fund shortage, which forced Bangladesh Bank to dissolve its board including removal of its chairman to grant emergency bail out funding, Bangladesh Industrial Finance Company (BIFC) failed this time to pay back Tk 31.73 crore to Rupali Bank. It is also insolvent to run normal banking. Meanwhile the NRB Commercial Bank also appears facing insolvency with huge bad loans to board members and their relatives. Bangladesh Bank is set to dissolve its board of directors any time to overhaul its management. Earlier People's Leasing and Financial Services (PLFS) went red as several sponsor directors grabbed most of the fund leaving its coffer empty. Needless to say major state owned banks are now functioning mainly on regular recapitalization from budgetary allocations.
Insolvably of banks and financial institutions is increasingly stoking alarm signals for the country's banking system and there is every reason to blame the government for the situation. The biggest factor hurting banks and financial institutions arises out of political shelter of the government to powerful people closer to power center. They grabbed their deposits including stealing of reserves from Bangladesh Bank in recent years openly enjoying impunity from prosecution.  
In fact the entire banking sector - both public and private - is now sitting on huge bad loans and influential people in politics and owners of big corporate houses are withholding repayment under the cover of loan rescheduling. They are exploiting the window time and again to suggest that such delaying means denying repayment at convenient time at the end. Many justify rescheduling blaming poor business but it does not mean that they remain defaulter ever longer. Others say they are running mills and factories and creating new jobs for people as cover to defer repayment. There may be genuine reasons for some but it must be clear that banks and financial institutions run on the basis of profitability; they are not charity to fund rich people while many of them are removing this money out of the country.
Capital flight runs over several billion dollars per year and it can't be inappropriate to say banks are catering in many cases depositors' money to dishonest people for capital flight. Our banks and financial institutions are open to money launderers in absence of strong protection of law and effective monitoring. The country would have achieved many times higher growth if all that money were invested in the country.
Our banking system is plugged by sky rocketing corruption and irregularities and the government instead of tightening the nose is more opening up the system to money launderers amending banking laws that allow up to four directors now from a family to sit on the board. It is turning banks into family business widening risks to depositors' money. We must say there is no alternative to punish the money launderers to save the banking system from collapse.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Myanmar`s criminal generals should be brought to book


ACCORDING to the medical charity MSF sources, at least some 6,700 Rohingyas got killed in the very first month of the Myanmar army's crackdown on the ethnic minority in Rakhine State. But it appears Myanmar government is trying to deceive the world by  avoiding to take back Rohingya refugees. It ...

Football »

Roma's Federico Fazio (hidden) celebrates with teammates after scoring the decisive goal during an Italian Serie A soccer match between AS Roma and Cagliari, at the Olympic stadium in Rome on Saturday.


Entertainment »

Athiya Shetty turns fashion designer


Ever since her debut, the 25-year-old actress has been in news for her chic sartorial choices. A source reveals, “According to the label, Athiya is known for her fashion sensibilities. She is a hit when it comes to red carpet appearances and nails the high street fashion.” “So, after meetings ...

Entertainment »

Virat-Anushka holidaying in heaven


The power couple, Virat Kohli and Anushka Sharma, who recently set some major wedding goals with their Italian destination ceremony, is now giving fans a glimpse into their post-married life. The ethereal couple tied the knot at a picturesque location in Italy on December 11. The 29-year-old newlywed, who is ...

International »

Trump allies say Mueller unlawfully obtained thousands of emails


Reuters, Washington :An organization established for US President Donald Trump's transition to the White House a year ago said on Saturday that the special counsel investigating allegations of Russian meddling in the 2016 election had obtained tens of thousands of emails unlawfully.Kory Langhofer, counsel to the transition team known as ...

City »

Ganoforum President Dr Kamal Hossain speaking at a discussion on 'Independence: Expectation, Achievement and Role' organised by 'Jatiya Oikya Prokriya' at the Jatiya Press Club on Friday.


.

International »

Trump promises `giant tax cut` as `Christmas gift` to Americans


PTI, Washington :US President Donald Trump today said the Congress has reached an agreement on tax legislation that will deliver more jobs, higher wages, and "massive tax relief" for American families and domestic companies.Trump recognised the tax reform as a campaign promise during his run-up to the 2016 presidential election, ...

Editorial »

Muslim leaders must continue to act together not to be ignored


WE welcome the OIC's (Organisation of Islamic Cooperation) decision declaring East Jerusalem as capital of Palestine at a summit at Istanbul on Wednesday as the most appropriate and timely action to denounce US President Donald Trump's unilateral declaration that Jerusalem is the capital of the state of Israel. Their call ...

Football »

Players of A Level team, the champions of the Inter-Class Victory Day Football Competition of Manarat Dhaka International School & College with the teachers of Manarat Dhaka International School & College pose for a photo session at Manarat College field on Thursday.


Entertainment »

Meryl Streep is the most Golden Globe-nominated actor


Meryl Streep has begun her Hollywood award season dominance by bagging her 31st Golden Globe nomination, which is a record in the 75-year history of the award show. Streep won the nomination in the best actress, drama category for her portrayal of the Washington Post publisher Kay Graham in Steven ...

Entertainment »

Porimoni, Zayed Khan`s Antorjwala releases today


Entertainment Report :Today across the country in 175 cinema halls Malek Afsari directed and Porimoni-Zayed Khan acted much awaited movie Antorjwala is set to be released. On the occasion its releasing Pori and Zayed will enjoy the movie along with director Malek Afsari in Dhaka’s Modhumita, Shyamoli and Sony halls.While ...

City »

Speaker Dr Shirin Sharmin Chowdhury handing over ICT Award to Director General of Health Department Prof Dr Abul Kalam Azad for his contribution in using digital technology in health services at Bangabandhu International Conference Center in the city on Tuesday.


Weekend Plus »

Quick recipes for the burger-lover in you


Weekend Plus Desk :If you are a burger lover or want to fix a burger quickly for uninvited guests, here are a few recipes which can save the day. Recipes by Chef Gaurav Chadha, in-house chef, Dr Oetker India Pvt Ltd:* Chicken and egg burger: Heat oil in a kadhai ...

Editorial »

Attack on New York City is disgusting


AN attempted terrorist attack in a New York City bus terminal by a US national of Bangladesh origin has caused widespread surprise and condemnation here and also in the Bangladesh community in the USA. The person Akayed Ullah at his 27 is a taxi driver in New York City and ...

International »

US embassy unlikely to move to Jerusalem before 2020: Tillerson


Xinhua, Washington :U.S. Secretary of State Rex Tillerson said Tuesday the U.S. embassy in Israel was unlikely to be moved to Jerusalem before 2020, national media outlets reported."It's not going to be anything that happens right away," U.S. news daily the New York Times quoted Tillerson's speech at the State ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news