Call to discipline the financial sector reiterated

| Update:
February 20, 2022 11:32:50 a.m.

Bangladesh’s graduation from Least Developed Country (LDC) status cannot be sustained without bringing discipline to the financial sector, says Dr. Debapriya Bhattacharya, Emeritus Fellow at the Center for Policy Dialogue.

The country’s economy will collapse if competence, efficiency and transparency are not ensured in the sector in question, he says.

Dr Debapriya made the observations during a mock parliamentary session titled “Government’s Will to Maintain Discipline in the Financial Sector” hosted by the Democracy Debate on Saturday.

The program was held in the auditorium of the Bangladesh Film Development Corporation under the chairmanship of Democracy Debate leader Hasan Ahmed Chowdhury Kiron, according to a press release.

In addition to democracy and governance, Dr. Debapriya said, regulation of the financial sector is crucial for sustainable development.

“It is unethical for banks to call meetings at midnight to exempt debtors from their debts with the intention of allowing them to participate in elections.”

Dr Debapriya urged the new election commission to take a tough stance on defaulting debtors, tax evaders and corrupt and anti-independent neighborhoods so they cannot contest the upcoming elections.

Calling information about the 10% default rate in the industry incorrect, he says the amount of debt written off is greater than the size of loans recovered.

The macroeconomist urged bank owners to exercise caution when it comes to making defaulting debtors members of the Bangladesh Bankers Association (BBA).

Quoting that the Bangladesh Bank (BB) lacks the goodwill and skill to bring discipline to the sector, he says: “Due to weak supervision, powerful people involved in the management of banks are ignoring the guidelines of the BB.

Two teams from American International University and Stamford University in Bangladesh respectively contested the debate to become co-champions with equal points.

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