Banking sector in dire straits

The country’s banking sector is in dire straits due to lack of good governance, insiders say.

As many as 13 out of the 48 state-owned, private and specialised banks are plagued with default loans and irregularities in loan disbursement thanks to lax control and monitoring system of the Bangladesh Bank.

Among them, eight are state-owned and specialised banks. The five private banks are Bangladesh Commerce Bank, National Bank, Farmers Bank, NRB and ICB Islamic Bank.

The ICB Islami Bank, for instance, shoulders the burden of the dissolved Oriental Bank’s corruption.

The central bank has not taken any action on the unprecedented incidents centring change of ownership in the private banking sector. On the contrary, it has, in fact, backed these incidents. As a result, panic has gripped the depositors and other stakeholders.

Persons involved in the banking sector said that in full knowledge of the central bank, state-owned BASIC turned into a problematic bank since 2011.read more