Bank failures could stall nat’l economy
Former caretaker government adviser Hossain Zillur Rahman has cautioned that Bangladesh’s economic slowdown cannot be reversed unless the country addresses the deep-rooted crisis in the banking sector.
Speaking at a seminar titled “Disaster in the Country’s Banking Sector; Context of Islamic Banking Sector: Impact on National Economy and Way Forward” at the CIRDAP auditorium in Dhaka on Saturday, Dr Zillur highlighted the urgent need for political commitment to restore discipline within the industry.
The event was organised by the Bank Customer Forum and brought together Islamic bank customers and key sector stakeholders. Dr Zillur alleged that political influence continues to shape critical economic decisions and questioned the introduction of legal provisions facilitating the return of individuals accused of contributing to the financial crisis.
He identified widespread corruption in policymaking, depositor hardship, falling investment, rising unemployment, and prolonged stagnation as major challenges confronting the economy.
“The inability of many depositors to access their savings is alarming and requires immediate resolution,” he said, emphasising the importance of maintaining the independence of Bangladesh Bank to safeguard its credibility and moral authority in managing the crisis.
Former FBCCI vice-president Abul Kashem Haider delivered the welcome speech, while researcher Mizanur Rahman presented the keynote paper.
Former Trust Bank managing director Faruq Mainuddin echoed the call for meaningful reforms, stressing that political will is essential.
He urged authorities to isolate losses caused by financial irregularities and restore clean balance sheets.
Badiul Alam Majumdar, Secretary of Citizens for Good Governance (SHUJAN), described the banking sector as the backbone of the economy and warned that large-scale looting in banks has placed the national economy under severe pressure.
He called for exemplary punishment for those involved in financial fraud and for the continuation of banking reforms, including reducing reliance on cash transactions and repealing controversial clauses in the Bank Resolution Act.
Several speakers alleged that Islami Bank Bangladesh PLC and Social Islami Bank PLC had been taken over through politically orchestrated moves, while regulators remained inactive.
Questions were raised about how entities with minimal shareholdings could gain control of entire banks, and attendees urged the government to clarify the alleged role of intelligence agencies in the process.
Speakers warned that further instability in Islami Bank could severely undermine public confidence, with depositors likely to resist any actions that threaten their interests.
