With the fall of the Awami League government, restructuring the banking sector has become one of the most urgent tasks for the interim administration. Over the past 15 years, the country’s banking system has plunged into a deep crisis.
During the tenures of three successive governors of Bangladesh Bank—Atiur Rahman, Fazle Kabir, and Abdur Rouf Talukder—control over the banking sector effectively shifted into the hands of an influential group.
Despite allegations of uncontrolled loan disbursement, political interference, money laundering, and bank takeovers during their terms, none of these three former governors has been held accountable to date.
In a white paper reviewing the country’s economic condition, a committee described the banking sector as a “black hole.” According to the report, distressed loans in the banking sector have reached Tk6.75 lakh crore. Non-performing loans alone have surged from Tk22,000 crore in 2009 to Tk4,20,335 crore by the end of March 2025.
Atiur Rahman: The beginning of irregularities and controversial decisions
Professor Atiur Rahman took office as governor in May 2009. While political interference was initially limited under his leadership, it grew significantly over time. Major scandals—such as the Hallmark scam at Sonali Bank and fraud at BASIC Bank—occurred during his tenure.
He also approved nine new banks closely aligned with the ruling Awami League. In 2015, he faced widespread criticism for allowing debt rescheduling for multiple business groups, including Beximco, based on a political letter. Known for his self-promotion, Atiur resigned in 2016 following the Bangladesh Bank reserve heist.
Fazle Kabir: Legalising capture and looting
Following the reserve heist, former finance secretary Fazle Kabir was appointed governor in 2016. During his tenure, S Alam Group took control of several private banks, including Islami Bank and Social Islami Bank. He reportedly approved the takeover from his residence late at night.
Fazle Kabir soon became central to bank misappropriations. Visits by S Alam officials to Bangladesh Bank increased, and loan policies were relaxed, paving the way for massive defaults. To extend his tenure, the then government amended the law, raising the retirement age for governors from 65 to 67 years.
Abdur Rouf Talukder: The money-printing governor
In 2022, another former finance secretary, Abdur Rouf Talukder, became the central bank governor. Under his leadership, money laundering accelerated. To cover the deficit of plundered banks, he authorised large-scale printing of money, which was then re-loaned to groups like S Alam and other influential quarters close to the ruling party. That money, too, was laundered abroad.
During his tenure, the central bank banned journalist entry and began withholding financial data. After the government’s fall, Talukder went into hiding and later resigned.
$10 billion laundered
Current Bangladesh Bank Governor Ahsan H Mansur recently warned that non-performing loans could rise to 25–30% in the near future. In an interview with The Financial Times, he revealed that with the help of the previous government, S. Alam Group siphoned off at least $10 billion (Tk1 lakh crore) from the banking system, equivalent to around Tk2 lakh crore laundered out of the country.
All three remain untouchable
Despite their direct or indirect roles in irregularities, looting, and laundering, none of the three former governors has been brought under legal accountability.
Attempts to contact Atiur Rahman and Fazle Kabir were unsuccessful, as their phones were switched off. Abdur Rouf Talukder remains in hiding.
While the new government has pledged to reform the banking sector and hold those responsible— including these three ex-governors—accountable, no visible investigation has yet begun.
As the nation’s banking system stands on the brink of collapse, those who presided over its ruin remain beyond reach. This, perhaps, is Bangladesh’s greatest financial tragedy today.
Source: Daily Sun
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