Nagorik Coalition, a citizen platform, has expressed deep concern over the appointment process and the professional background of the newly appointed governor of Bangladesh Bank.
In a statement issued following the formation of the new government after the 13th National Election on 12 February, the coalition noted that while leadership changes in state institutions are expected, the selection of the central bank chief has raised alarms within civil society.
The government appointed the new governor on 25 February. The coalition highlighted that the appointee lacks specialised expertise or experience in macroeconomics and financial sector management.
They further noted that this is the first time a businessman has been appointed to lead the country’s central bank – a move they described as rare even in economies comparable to Bangladesh.
The appointee has previously held significant leadership roles in influential business bodies, including those representing the ready-made garments (RMG) and real estate sectors, as well as the Association of Travel Agents of Bangladesh (ATAB) and the Dhaka Chamber of Commerce and Industry (DCCI).
According to the coalition, this background raises serious “conflict of interest” concerns, as central bank policies directly impact various business sectors.
Most concerningly, the coalition claimed that the new governor had rescheduled loans exceeding Tk80 crore for his own business interests under “special consideration.”
While legally permissible, the coalition questioned the morality of a person with such a massive debt burden heading a sensitive regulatory body.
Citing media reports, the statement also alleged that the newly appointed governor was a key member of the ruling party’s election steering committee.
Referring to a recent report by Transparency International Bangladesh (TIB), the coalition noted that 60 percent of Members of Parliament (MPs) and 62 percent of the Cabinet are businessmen by profession, and approximately 50 percent of MPs are indebted.
The coalition argued that the banking sector was the most damaged economic area during the previous 1.5 decades of “autocratic” rule, during which politically patronised “oligarchs” laundered public savings abroad.
Defaulted loans currently exceed Tk 6 lakh crore, representing a rate of 36.3 percent. The statement blamed the corruption and inefficiency of past Bangladesh Bank leadership for the ongoing economic crisis, including depleted foreign exchange reserves and high inflation.
Nagorik Coalition further stated that this appointment is a clear violation of the BNP’s election manifesto, which pledged to ensure good governance, discipline, and transparency in the financial sector.
They warned that appointing a person with such conflicting interests risks turning the central bank into a tool for business lobbies and “authoritarian kleptocracy.”
Recalling the public aspirations for institutional reform following the 2024 mass uprising, the coalition expressed doubt that a governor with such strong political and business ties could act independently. They warned that economic instability could lead to serious political unrest.
The coalition has urged the government to reconsider the appointment in light of the economic risks and potential conflicts of interest. They proposed that a new governor be appointed through a search committee of experts and following hearings by a parliamentary committee.
