Experts slam lack of steps to stop banking scams

There is no visible effort to curb irregularities in the banking sector marred by misuse of political influence and lack of good governance, said speakers in a roundtable on Thursday.
Shushashoner Jonno Nagarik (Shujan), a civil society forum, hosted the roundtable titled ‘steps needed to be taken to establish good governance in banking sector’ at the Jatiya Press Club.
Syed Abu Naser Bakhtiar Ahmed, an economist and a former managing director of Agrani Bank, in his keynote said around Tk 30,000 crore has been plundered through six big banking scams in the last seven years. “A huge number of people were affected by the swindles. But, no one has been tried for the incidents.”
Bakhtiar said the rising trend of irregularity, corruption and plundering in the banking sector is thwarting the country’s desired development.
The lack of good governance in the sector, especially in the state-owned banks, is serious, said former caretaker government adviser AB Mirza Azizul Islam. “Normal banking indicators, let alone the big scams, have exposed the lack of good governance in the sector.”
Citing an example, he said although 3 to 3.5 per cent is considered the standard proportion of non-performing loans across the globe, it stood at 21.9 per cent in the country’s state-owned banks in 2015 due to lack of good governance.
According to Mirza Aziz, Bangladesh Bank should use its autonomy properly, without bowing down to any political pressure and interference to bring back discipline and establish a strong monitoring in the banking sector.
He emphasised improving the banks’ credit risk management system, ensuring transparency in internal audit, monitoring and supervision, and ensuring prompt trial and visible punishment of those involved in scams and irregularities to restore good governance in the sector.
Bangladesh Bank former governor Salehuddin Ahmed said if the financial sector lacks discipline, the other sectors will be badly affected, and the nation will be unable to get proper benefits of the GDP growth.
He said the government should establish a balanced control, not too strict or too flexible, over the banking sector to keep it on the track.
According to the former governor of the central bank, the rules and norms in the country’s banking sector are of high standard, but what is crucial is their proper enforcement.
He is also for stepping up the central bank’s monitoring on the banks.
Former caretaker government adviser M Hafizuddin Khan decried the fact that people who were involved in different banking scams went unpunished. ‘The junior officers become the scapegoats in such cases. Bangladesh Bank should stop popular stunts and return to its core duty.’
Gonoshasthaya Kendra founder Zafrullah Chowdhury said the culprits are going scot-free. ‘They even come to the court for hearing riding lavish cars. The managing director of Basic Bank faces no charge. Such a culture of impunity will only encourage more scams,’ he said.
Dhaka University teacher and capital market expert Abu Ahmed said the government should sack those managing directors of state-owned banks who ask it for more capital.
Shujan general secretary Badiul Alam Majumder said banking scams are no longer limited to the commercial arena but have reached the country’s central reserve. ‘We have seen some efforts in the Philippines, but not in Bangladesh. This is unfortunate,’ he remarked.

News Courtesy: www.newagebd.net