Bangladesh Bank Governor Md. Mostaqur Rahman has revealed that one-third of all banking funds have been stolen. Noting that a significant portion of this money has been laundered abroad, he warned that those responsible for stealing bank funds will not be left in peace.
The governor further remarked that recovering laundered assets is a challenging task, with the global recovery rate standing at a mere 2 per cent. However, intensive efforts are underway to repatriate the money, and some funds have already been recovered.
Governor Mostaqur Rahman disclosed this information while responding to questions from journalists during a post-budget press conference.
Held today, Friday, at the Osmani Memorial Auditorium in the capital, the press conference was attended by the governor alongside 10 ministers, ministers of state, and advisors to the prime minister.
The governor addressed several queries regarding the trust crisis in the banking sector, depositors’ inability to withdraw funds, and Islami Bank.
“The default loans of banks stand at Tk 500,000 crore (5 trillion). It is impossible to offset this massive amount using revenue from the public exchequer. Consequently, various measures are being implemented. Our primary responsibility was to stabilise the banking sector while simultaneously recapitalising the banks. We are actively working on this,” the governor stated.
Addressing various discussions on social media regarding five merged banks, the governor said, “When I assumed office, I observed debates over whether the merged banks would survive. At that point, the Chairman resigned, and the Managing Director expressed an inability to join. Following that, it took some time to appoint the successive Chairman and the MD. Meanwhile, the board of directors of the Combined Islami Bank has already held a meeting. The integration of their core banking software will commence shortly, which will soon propel the bank merger process forward.”
In response to journalists’ questions, the governor remarked, “One group of people deposited money in the banks, while another group stole it. Now, these banks are being recapitalised using taxpayers’ money. We, too, remain deeply concerned about this matter.”
Acknowledging that financial institutions have been facing issues regarding the return of funds for the past 12 years, the governor assured that depositors of these institutions will receive their money within the next one to two weeks.