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** Election robbery system is not election: Situation calls for immediate change of govt ** Uncontrolled rice price hike hits poor, fixed income people ** Tea garden workers go on strike for wage hike ** Apparel exporters oppose 35pc hike in ICD charges ** Europe’s heatwaves, droughts put focus on climate change risks ** Pharma industry needs to face post-LDC challenges ** Bangladesh reports zero Covid death, 144 new cases ** Bangladesh strongly rejects visible ‘politically motivated efforts’ ** FBI took top secret files from Mar-a-Lago ** Last survivor of Uttara scrap shop fire dies ** 6 held over bus robbery in N’ganj The bus used to work as transport in the day and robbed at night: RAB ** US, Indonesia, Australia hold drills amid China concerns ** Hubby ‘confesses’ to killing female doctor in a hotel ** Cox's Bazar, the world's longest sea beach is under threat of erosion due to abnormal rise in water level during tidal surge. ** People in Bangladesh are living in heaven: FM ** Low-lying areas of 15 coastal districts face flood risk ** Govt takes austerity measures to save more electricity ** BD reports two more Covid deaths, 218 cases ** Dhaka, Delhi agree to strengthen defence coop ** Where BPC's Tk 46,858cr profits went? Experts and stakeholders ask government ** Govt fixes different weekly holidays for industrial belts ** BNP stages massive demo protesting fuel price hike ** HC wants to know authenticity of Swiss ambassador's statement over govt's step seeking info from Swiss banks ** Cabinet directs energy division to explain fuel price hike ** Weak fiscal situation is main villain of our economy: Debapriya **

Playing with public money is an unforgivable crime and duly punished

06 August 2022


Restoring good governance and people's confidence in the country's banking sector is mandatory amid ceaseless incidents of fraudulence. Bangladesh Bank called for this action while disclosing the fragility of banks on Thursday. Relatively 10 weak banks were identified in this phase based on four variables, including classified loan limit, capital adequacy, credit to deposit ratio and the quantity of provision.
Unabated swindling of money from banks has created indiscipline in the whole banking sector. The swindlers should be brought under justice through proper inquiry and investigation. Prompt trial and visible punishment of those involved in bank scams and irregularities are necessary to restore good governance and discipline in the banking sector. Default loans in the banking sector surged 16.38 per cent year-on-year to Tk 103,274 crore in 2021, rendering the relaxed loan classification policy unveiled by the Bangladesh Bank largely ineffective. The ratio of non-performing loans to outstanding loans and advances stood at 7.9 per cent last year in contrast to 7.6 per cent in 2020. BB data showed that 47 per cent of the defaulted loans were with the nine state-run banks.
Politically linked influential persons frequently intervene in the loan sanction process of banks, causing the health of banks to worsen. Such interventions should be stopped in order to ensure corporate governance in the banking sector. Default loans might increase further in the second quarter of 2022 as the impact of the withdrawal of the relaxed loan classification policy would take hold. The central bank should adopt policy and measures so that loan defaulters must pay the default loans first before securing new loans, while doing business should be eased.
The people's money is a trust, but bankers as trustees allowed plundering and robbing the people's money, and with the fall of this government, there will be nobody to save them. The government betrayed the people's rights and the bankers plundered the people's money. The thieves and plunderers could raise their heads high under a government which does not have the honour of being the people's government.

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