According to the private think tank, Centre for Policy Dialogue (CPD), 2017 was the year for bank scandals.
In the last ten years, Tk 225.02 billion has been embezzled in ten big scams from the financial sector, claims CPD.
While there were concerns over loan irregularities and scams in the banking sector, the Gross Domestic Product (GDP) in the fiscal year 2017-18, reached record 7.86 percent as well. Per Capita Income has also increased. Given the contrasting reality of the sector, the new government has moved to focus more on it.
As part of this, the finance ministry has sent two letters to the Bangladesh Bank, inquiring about the real situation.
Central Bank sources say, letters from the ministry addressing Bangladesh Bank’s Governor Fazle Kabir were sent on the Jan 3 and 6.
Bangladesh Bank spokesperson Sirajul Islam told Bangla Tribune, “Banks’ contributions in strengthening the country’s economy have been pivotal. The central bank, as their regulator is playing a significant role in this regard.”
He mentioned the two letters from the ministry asked about their ongoing and upcoming programmes.
The central bank is preparing reports with the information sought, he said.
According to sources, the new Awami League government, following an unprecedented landslide victory in the Dec 30 polls, plans on implementing pledges made in their polls manifesto. Move to further improve the banking sector is one of them.
In the last ten years, the sector has expanded much. A report titled “Banks’ role behind Government’s 10 years of success’, prepared by the central bank's research unit states that in 2008, the total deposit at the banks was Tk 2.53 trillion which stood at Tk 10.39 trillion in 2018.
In ten years, the deposit has risen by Tk 7.66 trillion with loan rising to Tk 6.36 trillion.
The letter sent on Jan 3 requested banks to take firm steps to tackle irregularities like embezzlement, money laundering and the culture of delinquent loans.
Information was sought on loan approval systems, steps to improve banking service, efforts to implement bankruptcy laws etc.
Another letter sent on Jan 6 highlighted continued efforts to make the banking sector fully digital, efforts by the government to provide loan facility to micro-entrepreneurs and non-agro sectors, separate banking facilities for women entrepreneurs, loans on easy conditions for poultry, fish farms and other facilities.
The letter also mentioned that other steps taken by the government include, the rise of export income, attainment of targeted revenue earning, reforms in the budget system, prevention of illegal money transfer, women’s emancipation etc.