Bangladesh Bank ineffective in controlling defaulted loans: TIB

GBNEWS24 DESK//

Bangladesh Bank (BB) has become an ineffective institution to control defaults loans, TIB Executive Director Iftekharuzzaman said on Tuesday.

Regulation and supervision authority of the BB on controlling defaulted loans is now only in name, he said during a virtual press briefing.

The media briefing was arranged on releasing a research paper, titled “Banking Sector Supervision and Default loans Control: Good governance problem of Bangladesh Bank and way to overcome.”

The task of reducing stressed loans from the banking sector was not being carried out effectively by the central bank, said TIB executive director.

Iftekharuzzaman said, “We have noticed that general people’s deposits in banks are being used as personal property of some people. On the other hand, bank directors, regulator and the government are giving opportunities to defaulters.”

While it was the responsibility of the government to protect the interests of bank depositors, but it was patronizing money launderers and fraudsters in many cases, he also said.

TIB executive director mentioned political culture was responsible for the weakness of the banking sector, as associates of defaulters, beneficiaries and political influencers became institutionalized.

The collapse in the banking sector was unavoidable if all these menace were not effectively addressed, he warned.

TIB director (research and policy) Mohammad Rafiqul Hasan presented the research paper in the press conference.