The government is considering a comprehensive reform initiative to rebuild, repair and safeguard Bangladesh’s banking system, Information and Broadcasting Minister Zahir Uddin Swapon said on Sunday, signalling that the sector may come under a formal reform framework similar to initiatives proposed for other sectors.
Speaking as chief guest at a seminar titled “Good Governance in the Banking Sector and the Role of the Media”, organised by the Economic Reporters Forum (ERF) in Paltan, Dhaka, Swapon said banking sector reform remains under active government consideration.
“Just as initiatives have been taken to form reform commissions in various sectors, the banking sector will not remain outside the reform process. The repair, reform and protection of the banking system are very much on the government’s agenda,” he said.
Describing the banking industry as the lifeblood of the economy, the minister said sustainable economic progress would not be possible without overhauling the sector.
“If we can talk about media reform, anti-corruption commissions and administrative reforms, then why should we not reform a sector as important as banking? We will certainly do it,” he added.
Swapon acknowledged that irregularities and financial crimes in the banking sector had occurred under state patronage in the past.
“To bring genuine change to the banking sector, opportunities for wrongdoing under state patronage must be eliminated. The governance deficiencies that exist within the country’s political and administrative structures are also reflected in the banking sector,” he said.
The minister alleged that those who capture banks often target small investors in the capital market as well.
“The volume of non-performing loans clearly shows who the genuine entrepreneurs are and who the fraudsters are. Alongside bringing the banking sector under a sound governance framework, we must also strengthen the capital market,” he said.
Swapon further argued that past financial crimes were not the work of any ‘invisible force’ but stemmed from weaknesses within state institutions and governance systems.
“Without proper accountability, information, statistics and financial reports can easily be distorted,” he said.
The issue of journalists’ restricted access to the fourth floor of Bangladesh Bank, where key policymaking offices are located, was also raised during the seminar.
Responding to the issue, the minister said: “What is important is ensuring unrestricted access to information. Wherever information exists, journalists should have access to it.”
Praising the role of economic journalists in promoting accountability, he said the media had effectively served as the only watchdog exposing corruption and irregularities in the banking sector.
“Much of what people know about irregularities, corruption and the actual condition of the banking sector has come through your reporting,” he told journalists.
Bangladesh Bank Deputy Governor Nurun Nahar said weak governance was the primary reason behind the sector’s fragile condition.
“The four pillars of good governance—accountability, transparency, responsibility and fairness—have weakened significantly, creating multiple challenges for the banking sector,” she said.
The seminar was chaired by ERF President Doulot Akter Mala and moderated by General Secretary Abul Kashem. Director General of the Bangladesh Institute of Bank Management (BIBM) Ejazul Islam and other stakeholders also attended.
