'Reform banking sector for budget implementation'

Former Bangladesh Bank deputy governor Khondkar Ibrahim Khaled on Saturday underscored the need for reforming the country's banking sector for proper implementation of the national budget for the 2019-20 fiscal, reports UNB.

"Default loans must be recovered, tax collection should be increased and legal obstacles to the banking sector have to be removed for proper implementation of the budget," he said while speaking at a seminar on the role of bankers in implementing the budget.

Association of Bank Officers, Bangladesh (ABOB) arranged the programme at the capital's National Press Club.

Ibrahim Khaled said although scam-hit Farmers Bank has been renamed as Padma Bank, there's no change in its board. "Besides, you know all about BASIC Bank."

Stating that oxygen needs to be given to those who have the chance to survive, he questioned, "Why will we give oxygen to the banks that don't have 60 per cent of their capital?"

He also called for ensuring independence of the central bank.

Citing an example from India, the former central bank deputy governor said Indian prime minister Narendra Modi asked an official of their central bank to release huge money but the official refused to do so. "The official instead resigned but didn't pay the money. This is called responsibility."

"Father of the nation Bangabandhu Sheikh Mujibur Rahman wanted a discrimination-free society and economy. But there's increased discrimination in the country's economy," he added.

Ibrahim Khaled said there are brutal killings in the country due to social commotion which arises from economic discrimination.

Ahmed Firoz Kabir, member of the Parliamentary Standing Committee on finance ministry, said the banking sector should be disciplined. "You (bankers) know it better how it can be done."

He said Bangladesh wants to provide loan instead of taking it by 2030. "So, we've to reform the sector," he said.

Mohammad Ismail, chairman of Bangladesh Krishi Bank, said bankers play an important role in economic development and budget implementation.

He underscored the need for developing efficiency and resolving the problems in the banking sector.

Former director general of Bangladesh Institute of Bank Management (BIBM) Towfiq Ahmed Chowdhury said the banking sector plays an important role in budget implementation as around 90 per cent finance is operated through banks.

General secretary of Bangladesh Economic Samity Jamal Uddin Ahmed alleged that those who are involved in wrongdoings in the banking sector enjoy the benefits. "Defaulter at a state-owned bank becomes chairman of a commercial bank."

Executive director of Bangladesh Bank (research) Md Akhtaruzzaman presented a keynote paper at the event where he underlined the importance of increasing foreign reserve and boosting export-oriented industries.

ABAB president Md Mohiuddin Hawlader presided over the function moderated by its general secretary Anis Munshi.