DE Online Report
The Centre for Policy Dialogue (CPD) reported that approximately Tk 922.61 billion was misappropriated in 24 major bank frauds over 15 years, from 2008 to 2023.
The domestic think tank gave the information during a press conference on Monday, focusing on the restoration of good governance in the banking sector.
CPD Executive Director Fahmida Khatun delivered a presentation at the event, with CPD Research Fellow Syed Yusuf Sadat as a co-author of the paper.
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“The amount of embezzled money is equivalent to 12 per cent of the national budget of the 2023-24 fiscal year or 2 per cent of the gross domestic product for the 2022-23 fiscal year.”
According to bdnews24.com, while recommending the formation of a three-month banking commission to identify and solve the banking sector’s issues, the organisation said that the financial institutions department of the finance ministry should be closed to reduce the dual administration of the banking sector.
The CPD also reported that Bangladesh Bank does not control government banks for the financial institutions department.
According to Mostafizur Rahman, an honorary fellow of the CPD, forming a bank commission is crucial to breaking the vicious cycle of the banking sector.
Fahmida Khatun said, “Many banks have become clinically dead. These banks will not be able to get back on their feet. They need to be allowed to die naturally. The government is keeping these banks running by pouring in more money and capital.”
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Despite not knowing the exact number of ‘dying’ or ‘clinically dead’ banks, Fahmida said: “According to the 2021 bank reports, 11 banks failed to reserve provisions at different rates per the Basel principles of international standards.”
While stating that these groups play a huge role in Bangladesh’s economy, Fahmida said: “The country’s banking sector is now working to grow the influence of individuals and groups. The rules are being made for the few existing groups.”
The CPD executive director also remarked that the entire banking sector is now operating outside of the rules and regulations.
