Bangladesh Bank governor Ahsan H Mansur has said that most banks in Bangladesh rely on India-made core banking systems – a dependence that, he warned, highlights the urgent need for domestic capability building.
Speaking at the anniversary event of Financial Excellence Limited at a city hotel on Saturday, he said, “We must strengthen our own technical capacity in this area.” Financial Adviser Salehuddin Ahmed attended the event as chief guest.
Expressing concern over the lack of qualified management in the banking sector, the governor said, “It’s becoming increasingly difficult to find well-trained and knowledgeable managing directors for banks. Even good heads of departments – whether in corporate or consumer divisions – are hard to find. The challenge ahead is even greater.”
Financial Adviser Salehuddin Ahmed cautioned that the economy faces multiple challenges in the next four to five months.
Governor Mansur also described the current state of the financial sector as “very weak,” noting that “our financial sector amounts to only 52 to 53 percent of GDP, whereas in China it exceeds 200 percent and in India it’s nearly 100 percent. Having just around 50 percent is not acceptable. On top of that, non-performing loans are rising, which is a serious weakness in bank management.”
He blamed political interference as a key barrier to sound governance in banking. “Banks often rush into the same type of business without properly assessing the risk beforehand,” he said. “As a result, they frequently end up lending without understanding the actual risks involved.”
The governor also underscored the need to automate microcredit operations. “Microcredit must be automated; otherwise, they will not survive,” he warned.
