Banks will not belong to any political party. However, supporters of different political parties may work within the banking sector, said Bangladesh Bank Governor Md Mostaqur Rahman.
He stated that as part of efforts to recover assets laundered abroad, authorities have already frozen assets worth US$25 million in the United Kingdom and will repatriate those assets to Bangladesh shortly.
He also noted that the government is reforming the Money Loan Court Act to expedite the disposal of defaulted loan cases and is drafting new legislation to resolve unrecoverable loans.
The governor said that ensuring professionalism, accountability, and good governance in bank management and lending operations remains the primary objective of the current reform programme.
The central bank governor made these remarks during a courtesy meeting with leaders of the Editors' Council, an organisation representing editors of national daily newspapers, at Bangladesh Bank's headquarters on Monday afternoon.
During the discussion, the editors sought clarification from the governor on various issues relating to the economy and the banking sector.
Bangladesh Bank officials responded to the editors' questions and outlined a range of measures undertaken by the central bank. They also emphasised that all officials at Bangladesh Bank support institutional autonomy.
During the meeting, Bangladesh Bank informed the editors that they had held detailed discussions on ongoing banking sector reforms, the establishment of good governance, and efforts to ensure overall financial stability.
The governor also briefed the editors on the progress of the merger process involving weak banks. He explained that authorities had already completed several administrative and managerial changes as part of the process.
The governor also informed the editors that when patients require foreign currency exceeding the approved limit for medical treatment, Bangladesh Bank provides approval through the relevant bank within the shortest possible timeframe upon application.
Once banks complete the development and integration of their core banking systems, the restructuring programme will progress more rapidly.
The governor also highlighted various measures that the central bank has taken to protect depositors' interests, including the reconstitution of the boards of directors of several major banks, among them Islami Bank Bangladesh PLC, as well as changes in management structures.
Regarding the digital transformation of the banking sector and financial inclusion, the governor said that Bangladesh Bank is working to establish an integrated digital financial ecosystem.
Under this initiative, the central bank has undertaken programmes involving digital nano-loans, AI-based credit assessments, and approvals relating to credit bureaux.
“The concept of ‘One Citizen, One Identity, One Wallet’ will enable the country to complete its digital transformation process more rapidly,” the governor stated.
“Through BanglaQR, we can reduce the use of cash, ensure digital transactions, and increase government revenue collection by bringing customer transactions under a reporting system,” he added.
The governor also informed the editors that when patients require foreign currency exceeding the approved limit for medical treatment, Bangladesh Bank provides approval through the relevant bank within the shortest possible timeframe upon application.
In addition, authorities have reduced the interest rate on funds used for bill discounting under UPAS (Usance Payable at Sight) arrangements. This measure is expected to contribute to lower prices for imported goods.
Before the budget, we came to learn about the latest state of the economy. People have many concerns. There are employment-related challenges. At the same time, certain issues remain amid ongoing protests and movements. We wanted to know the current status of defaulted loans. The governor and his colleagues provided information on these matters, and we also sought clarification on several issues.
According to sources present at the meeting, the governor stated that the bank merger programme would continue. Bangladesh Bank has instructed banks to withstand any political pressure that may arise.
Under the Tk 20 billion fund announced to restart closed factories, banks will prioritise lending to borrowers with strong credit records. The central bank is also working to increase the number of independent directors in the banking sector.
The governor further stated during the meeting that authorities could not reduce bank lending rates abruptly and that the process would require time. He also noted that market forces would determine the exchange rate of the US dollar.
Members of the Editors' Council offered various constructive recommendations aimed at ensuring the sustainable development of the banking sector.
According to Bangladesh Bank, both parties expressed their commitment to continuing mutual co-operation in order to safeguard the country's economic stability.
Following the discussion, Editors' Council President Nurul Kabir said, “Before the budget, we came to learn about the latest state of the economy. People have many concerns. There are employment-related challenges. At the same time, certain issues remain amid ongoing protests and movements. We wanted to know the current status of defaulted loans. The governor and his colleagues provided information on these matters, and we also sought clarification on several issues. The editors expressed concerns regarding a number of matters, and the central bank also sought some recommendations from the editors. The primary purpose of this meeting was to understand how the banking sector is functioning through mutual discussion and to raise the concerns of ordinary citizens.”
When asked what specific concerns the editors had raised regarding the banking sector, Nurul Kabir said, “We discussed issues such as whether depositors would be able to recover their money and what would happen with the bank merger process. We also asked what measures the central bank is taking to promote investment and employment. Bangladesh Bank informed us about its plans to further strengthen Islami Bank.”
After the meeting, Editors' Council General Secretary Dewan Hanif Mahmud told journalists, “We raised several issues, and they provided information on a number of matters. It was essentially an exchange of information. The banking sector serves as an important indicator of the country's economy, both domestically and internationally. The sector sends a significant signal regarding confidence, private-sector activity, and foreign trade. We discussed the recently enacted Bank Company Act. We also asked whether banks would be returned to their previous owners. Bangladesh Bank informed us of its position on this matter.”
Other editors present at the meeting included Shamsul Haque Zahid, editor of The Financial Express; Matiur Rahman Chowdhury, editor-in-chief of Manabzamin; Matiur Rahman, editor of Prothom Alo; AMM Bahauddin, editor of Inqilab; Shahed Mohammad Ali, editor of Samakal; and Mostafa Mamun, editor of Agamir Shomoy.
In addition to the governor, deputy governors and other senior officials of Bangladesh Bank attended the meeting on behalf of the central bank. The discussion continued for approximately two hours.