Banking sector to be brought under reform commission: Information minister

Banking sector reform, change and repair will be brought
under a commission, Information and Broadcasting Minister Zahir Uddin Swapon
said today (7 June).
"When
commissions have been formed for media, anti-corruption and administrative
reforms, why should an important sector like banking remain outside reform? We
will do it," he said while speaking as chief guest at a seminar titled
"Good Governance in the Banking Sector and the Role of Media,"
organised by the Economic Reporters Forum (ERF) at its office in Paltan, Dhaka.
Swapan
said good governance in the banking sector cannot be seen in isolation.
"Discipline cannot be restored in the banking sector
through media oversight alone unless good governance is ensured in the overall
state and political system," he said.
The
minister alleged that state statistics had been used as a political tool in the
past.
He
said the real situation was hidden through data distortion and manipulation.
"Such
changes in data or performance-related statistics would not have been possible
without state patronage," he said.
Referring
to the development of the country's economy, Swapan said the private sector has
expanded following the economic liberalisation initiated by former president
Ziaur Rahman.
The
information minister also called for strengthening the capital market to reduce
dependence on banks as a source of financing.
He
alleged that those who embezzled bank deposits also misappropriated money from
small investors in the stock market.
United
Commercial Bank (UCB) Managing Director Mohammad Mamdudur Rashid said the
banking sector is very important in the country's economic and social reality,
but it has faced several crises due to a long-standing lack of good governance.
"UCB
is also under financial pressure," he said.
Mamdudur
said actual default loan figures had remained hidden for a long time.
Following
Bangladesh Bank instructions, the real default loan situation has become
visible, he said.
"This
is not a picture of deterioration in one year. It is a reflection of the
reality over a long period," he said.
The
keynote paper said the banking sector remains the main source of financing in
the country.
As
the capital market and bond market have not been able to play their expected
role, most short-, medium- and long-term financing is still done through the
banking system.
The
paper said the overall stability of the economy is closely linked to good
governance in the banking sector.
It
also said the media plays an important role as the "fourth pillar" in
ensuring good governance and preventing corruption.
However,
governments often try to silence the media instead of accepting constructive
criticism positively, the paper said.
The
keynote paper was presented by Samakal Special Correspondent Obaidullah Rony
and Prothom Alo Senior Reporter Sanaullah Sakib.
















