Absurd ask of the bankers
At a juncture when the banking sector is in shambles, the Bangladesh Association of Bankers have come up with an absurd ask. At a recent closed door meeting with finance minister AMA Muhith, they came up with a nine-point demand, one of the major points being that steps be taken to ensure the media does not report negatively on the banking sector. They even proposed the enforcement of a financial information act in this regard, under Bangladesh Bank and the finance ministry.
What sheer impertinence! The bank owners will do as they please, indulging in one scam after another, but the media will have to remain silent. The president of the association claimed that the media report on his bank, Exim Bank, was entirely false. If any such false report is published, there is always scope to take legal action. The press council can be approached. But it is absurd to imagine that no one will report on irregularities in the banking sector.
What do economists and banking experts have to say on this head? Former finance advisor AB Mirza Azizul Islam terms this demand by the bankers as illogical, saying the media must continue to report on scandals in the banking sector in public interest. Based on media reports, people can decide on where they can keep their money safely.
Former governor of Bangladesh Bank Salehuddin Ahmed has said this demand of the bankers association is unlawful. The general clients do not read details of the annual reports of the banks, they rely on media reports.
Former deputy governor of Bangladesh Bank Khondokar Ibrahim Khaled said that there was negative reports about the banking sector because of the scams which were taking place one after the other. If the media didn’t report on these, the banking sector would sink further into trouble.
Over the past few years it has been the media which brought to light the financial scams of Hall-Mark, BASIC Bank, Farmers Bank and others. In many cases, it was the media reports that led the government to take action.
It is disconcerting to see the bankers’ association making increasing demands on the government as the situation of the banking sector goes from bad to worse. In a latest move, the six per cent capital to be deposited by banks with the central bank, has been reduced by one per cent. Previously two members of a family could be on a bank board, but now this has been increased to four. The term that a director can remain on the board has also been extended. In response to the bankers’ association demands, the finance minister has directed that 50 per cent of government funds be deposited with private banks. Previously this was 25 per cent.
A dynamic banking sector is essential for a country’s economy to flourish. It is not hard to discern why the bankers’ association, rather than concentrating on this, is focusing all their ire on the media. We can only hope the government does not relent to such a ridiculous request of the association. We demand that Bangladesh Bank and the government take stern measures against all the corruption, irregularities and looting being carried out in the banking sector. We also want to vehemently state that the media will continue to report on corruption in all spheres, including the banking sector.