Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Sunday, October 21, 2018 06:44:30 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Finance Minister must answer, he cannot remain mum over bank scams

By
12th-Jun-2018       
Comments
Share your thought
Post a comment »
Read all () »

ON Sunday, some ruling party and opposition lawmakers blasted the Finance Minister AMA Muhith in Parliament for his ineptness and deadly silence on the widespread irregularities in the banking sector during his budget speech. A growing number of loan scams and mismanagement have plagued the banking sector in the past few years, but the Finance Minister's inaction and silence forced the ordinary citizens to lose confidence in the banking sector. Muhith however assured the formation of a banking commission to investigate irregularities.
Presently, defaulted loans are rising and have reached nearly 11 percent of the total outstanding loans. If the rescheduling is taken into account, it would be about 20 percent. Surprisingly, many borrowers are willful defaulters. Big borrowers -- of Tk 500 crore and above -- were given extra benefits in the name of restructuring their loans in 2015. Many of them have already become defaulters and are now lobbying hard to reschedule their loans again. BASIC, once a healthy state bank, was destroyed in the hands of Sheikh Abdul Hye Bachchu during 2009-2013. The State-run Sonali, Janata, Agrani, and Rupali Banks have also been hit by big loan scams and are now being recapitalized with taxpayers' money. Now this disease has spread to private banks, such as Farmers Bank, which  is failing even to pay off depositors' money.
Newspaper reports said lawmakers slammed Muhith for favouring bank looters instead of going tough on them. The Finance Minister in the latest line of mercies slashed corporate tax for banks and financial institutions by 2.5 percentage points in the proposed budget, a move that would benefit the banks' directors. Whereas the banking sector is now struggling to survive due to the rising defaulted loans, capital shortfall and financial scams that mainly emerged from a lack of corporate governance, corruption in loan disbursements and growing influence of directors of private banks in the banks' affairs. When the AL took office in 2009, the size of the defaulted loans was Tk 22,482 crore. By March this year, it soared to Tk 88,589 crore.
The discussion in Parliament is necessary and long overdue. We must say the Finance Minister cannot remain mum on the shrinking of the banking sector. He must answer how and why thousands of crores of takas have been looted.

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Khashoggi`s brutal murder has brutally damaged image of Saudi Kingdom


The Saudi Kingdom has ultimately confirmed that writer and critic Jamal Ahmad Khashoggi was killed inside the Saudi consulate in Istanbul city.  Saudi state media reported Khashoggi was killed in "fist-fight" with the Kingdom's officials inside its consulate. The announcement marked a U-turn from the Kingdom, which had previously denied ...

International »

Khashoggi criticises Saudi Prince in newly released interview


Saudi critic Jamal Khashoggi criticized Crown Prince Mohammed bin Salman's "authoritarian rule" shortly before his death, in an interview published following confirmation he died at the kingdom's Istanbul consulate.Speaking off the record to a Newsweek journalist working on a story about the Saudi leadership, he insisted he did not view ...

Business & Economy »

Economists sign declaration against Brazil frontrunner


AFP, Rio De Janeiro :More than 350 economists -- among them a Nobel Prize winner -- have signed a declaration saying Brazil's frontrunner to be president, far-right politician Jair Bolsonaro, is not the best choice for his country.The experts stated that Bolsonaro's leftist rival, Fernando Haddad, was "the best alternative" ...

Entertainment »

Sonakshi to play the female lead in Mogul?


A biopic based on the life of a T-series honcho Gulshan Kumar is in the pipeline, but looks like the film is facing a lot of hurdles. After the director of the film Subhash Kapoor was accused in the ongoing #MeToo movement of sexual misconduct, Aamir Khan who was co-producing ...

Entertainment »

Vidya Balan's first look from the NTR biopic


Vidya Balan is one the top actresses of Bollywood. She has the ability to captivate the audience with her performances. Vidya has already impressed the audience with her brilliant performance in the biopic of Silk Smita that was titled The Dirty Picture and now the actress is set to do ...

City »

BNP Secretary General Mirza Fakhrul Islam Alamgir speaking at a rally organised by JAGPA–an ally of the 20-party alliances on Saturday at the DRU Auditorium demanding release of Khaleda Zia and annulment of Digital Security Act 2018 and verdict against Tarique Rahman, party's Senior Vice-Chairman.


Editorial »

European Union must challenge the undemocratic election process


THE European Union has decided not to deploy an election observation mission during the 11th parliamentary election in Bangladesh due by January 28 next year. This has been conveyed to the Election Commission in a diplomatic note. A copy of the note verbale was also handed over to the commission ...

Sports »

Los Angeles Dodgers' Austin Barnes hits an RBI single during the fifth inning of Game 5 of the National League Championship Series baseball game against the Milwaukee Brewers in Los Angeles on Wednesday.


Cricket »

Ten-wicket Abbas destroys Australia for Pakistan's series win


AFP, Abu Dhabi :Medium pacer Mohammad Abbas took his maiden ten-wicket haul in a match to fire Pakistan to a 373-run win over Australia in the second Test in Abu Dhabi on Friday.Abbas followed his 5-33 in the first innings with figures of 5-62 to wreck Australia for 164 after ...

Entertainment »

Aamir Khan`s smile in new poster of Thugs of Hindostan


Ever since the intriguing trailer of Aamir Khan, Amitabh Bachchan, Fatima Sana Shaikh and Katrina Kaif starrer Thugs of Hindostan has been unveiled, there is much excitement around the film. The film is one of the biggest releases of the year and will hit the silver screens on November 8. ...

City »

Bangladesh General Students` Parishad formed a human chain on Friday in front of the Jatiya Press Club demanding 35 years limit applying for govt job.


Business & Economy »

Mamun-Ur-Rashid, Managing Director of Standard Bank Limited poses for photo session with the participants of a two day-long training on "Self Leadership, Advanced Managerial Skills & 21st Century Managerial Mindset" organized by the Training Institute of the Bank. Alkona K. Choudhuri, SEVP and Head of Human Resources Division of SBL, Md. Saif Noman Khan, Asst Prof. of IBA, DU, Md. Zakaria, Principal and Md. Amzad Hossain Fakir, Faculty of SBL Training Institute were present on the occasion.


International »

Trump concedes Khashoggi likely dead, threatens consequences


AP, Washington :President Donald Trump acknowledged Thursday it "certainly looks" as though missing Saudi journalist Jamal Khashoggi is dead, and he threatened "very severe" consequences if the Saudis are found to have murdered him. His warning came as the administration toughened its response to a disappearance that has sparked global ...

International »

Russians ‘will go to heaven’ in event of nuclear war: Putin


AFP, Moscow :Russians will "go to heaven" as martyrs in the event of nuclear war because Moscow will only ever use nuclear weapons in retaliation, President Vladimir Putin said Thursday."We have no concept of a preemptive strike," Putin told a forum of international experts in the southern city of Sochi ...

Football »

Chairperson of the Women's Football Committee of Bangladesh Football Federation (BFF) Mahfuza Akter Kiron speaking at a press conference at the conference room in BFF House on Thursday.


 
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