Government must take steps to ensure good governance in banks

The government should take proper, visible and fast actions to ensure good governance in the banking sector. The banking sector is facing monumental challenges because of corruption, higher non-performing loans, volatility in the foreign exchange regime, and a liquidity crunch. Economists asked the government to publish all activities that have happened in the banking sector. The government should publish all activities that have happened in the banking sector.
To ensure good governance in the banking sector, all necessary steps should be taken fast and they should be visible. Bona fide data is necessary for the improvement of the economy but some problems remain in getting the real data. Regarding the interest rate ceiling in the banking sector, the economists said what is happening regarding the deposit and lending rates are unacceptable. The central bank has maintained a 9 per cent lending rate cap on loans since April 2020. As a result, the country has not been able to rein in the supply of liquidity to give a boost to its fight against inflation.
Banking sector volatility has not come in a day, rather the government’s policy support in favour of swindlers along with the regulatory body-Bangladesh Bank’s nonchalance has bolstered the suit-clad robbers. The situation comprehended that the regime has had virtually no responsibility to control the banking sector volatilities over the last decade. State-owned banks injected fresh capital from the national exchequer after the vault was looted by politically-blessed directors and businesses. If there is any law, legal system, justice, law enforcers and regulatory body who act upon their job description under the Constitution-how do the bank robbers stay at large?
In the economy, everything seems to be falling apart. Regulatory bodies, law enforcement agencies, and the government are in long hibernation to downplay the economy by letting the “mafia” do what they wish.