The Governor of Bangladesh Bank, Dr. Ahsan H. Mansur stated, “The country would have been adequately served by 10 to 15 banks. However, with 64 banks currently operating, the excessive number has resulted in greater administrative challenges and increased costs.”
He emphasized that reducing the number of banks would help cut costs and boost profitability.
He made these comments while delivering the keynote speech as the chief guest at a session titled "Banking Sector: Current Situation and Future Challenges" at Jagannath University on Wednesday morning.
The event was jointly organized by the Bangladesh Economic Association and the university's Department of Economics.
The Governor pointed out that the biggest issue in the country's banking sector is governance failure.
“Loans have been given under the influence of the government and powerful individuals or families. This has happened due to negligence on the part of Bangladesh Bank and other related institutions, which cannot be denied,” said Dr. Ahsan H. Mansur.
He further said that globally, the banking sector ranks third among four major sectors. However, in Bangladesh, it holds the top position, leaving other financial sectors in a state of loss.
He emphasized that efforts are needed to bring the sector back to a healthy state, which will require long-term work. The banking sector needs to be prioritized alongside other sectors to achieve this.
Discussing the dire state of the country's financial sector, Dr. Mansur mentioned, “Every government has been heavily reliant on the banking sector. The decline of the financial sector is attributed to the underdeveloped bond market and stock market. Moreover, the banking sector in Bangladesh is not prepared to offer long-term loans. The system is such that after disbursing loans, borrowers are kept under constant pressure.”
The event was also attended by the Vice-Chancellor of Jagannath University, Professor Dr. Rezaul Karim, the Convener of the Bangladesh Economic Association, Professor Dr. Mahbub Ullah, and the Member Secretary Dr. Mohammad Helal Uddin, among others.
Bd-pratidin English/ ANI
