Central bank authorities feel that lack of integrity among a large number of bank officials is the reason for the rise of default loan.
These dishonest people approved loans without proper assessment to make unethical gains which has created a precarious situation for banks in general, feel central bank officials.
Default loan is increasing rate of interest which is having an adverse impact on business, they added.
Faced with such a situation, Bangladesh Bank has asked to search for honest officials who will be given adequate incentives and recognition.
According to a Bangladesh Bank directive, every banker will take a 100 marks exam and those with passing grades will win the epithet of ‘honest banker’, a certificate and one month’s salary as bonus.
However, former central bank deputy governor, Ibrahim Khaled, feels that instead of this tests based system to recognize honest officers, steps should be taken to identify dishonest ones and hand out punishment.
“The people who are responsible for the huge default loan or bad loans have not been punished; punitive measures taken against them will work as warning for others.”
On 8 August, Bangladesh Bank has issued the ‘best practices award’ policy. A banker with three years’ work experience will be eligible for the award.
Agrani Bnak’s chairman, Dr. Zayed Bakht, said: “in the banking sector, honest officers need to be recognized while the dishonest ones have to be punished.”
Meanwhile, several MD’s of banks are currently embroiled in a variety of malfeasance with six listed in cases lodged by the Anti Corruption Commission.
Some are on bail while others are fugitives. Former MD of Sonali Bank, Humayun Kabir, and former MD of Basic Bank, Kazi Fakhrul Islam, are traceless. Former MD of Agrani Bank, Syed Abdul Hamid is on bail.
Former spokesperson of Bangladesh Bank and executive director, M Mahfuzur Rahman, told Bangla Tribune: “some MD’s are involved in unethical acts while others are compelled to act dishonestly after being coerced by the bank’s chairman or directors.
“This grave flaw in the sector has to be fixed, otherwise the result will be devastating.”