Wednesday, August 23, 2017 | ePaper

Banking is easy for big loans and bad defaulters : Reasons to be investigated

  • Print
Given the incredible amount of default loans, impossibly higher interest rates, and organised boardroom corruptions - it seems our banks and financial institutions have turned into exclusive domain of vested interest quarter to serve the rich and the corrupt ones. There is almost no instance where the interest rate is below a double-digit, and also pre-conditions for submitting collaterals have become pointlessly complex for honest entrepreneurs and businessmen. The point, however is that the exclusive group of the moneymaking mafia in the country remains far beyond the reach of the law. Most of them are not only loan defaulters by thousands of crores, they have illegally laundered even more to other countries.
Just to give a clear glimpse, the Banking sector grapples with a staggering amount of more than Tk 63,365crworth of unrecovered bad loans. Disclosures by the Swiss National Bank show deposits by Bangladeshi citizens at various Swiss banks soared to some 62 percent year-on-year in 2013. It stood at Tk 3,236 crore in 2012, up from Tk 1,991 crore the previous year, and the money deposited in Swiss banks is only a tiny fraction of the total amount which is siphoned off illegally. Other lucrative international destinations for laundering money are reportedly - Malaysia, Canada and UAE.  
More shockingly, according to the US-based Global Financial Integrity (GFI) some Tk. 3.57 lakh crore - an amount almost the size of Bangladesh's current national budget - has been swindled from the country over a period of 10 years until 2014. On an average, Tk. 35,992 crore has been illegally laundered each year. And this couldn't have happened without the active involvement of our public and private banks. Much painfully, when the government introduces harsh tax mechanisms for squeezing the last penny out of our pockets - it is not the financial elite but rather the ordinary's lower and middle class hardworking people who feel the financial crunch.
In terms of applying for a loan - it has been reported many times that it is almost impossible to get it without bribing the board of directors responsible for approving loans.
However, much of the banking sector should stop catering to the needs of the few wealthy ones those who have become rich at the expense of usurping public money. Rather puzzlingly, our banks usually tend to make the wealthy wealthier and a criminal into an even bigger criminal by avoiding extending all helping hands. Also it's time to introduce massive reform measures to restructure the banking sector.
The banking sector has not developed as banking expertise. There is too much politics and too much corruption. The result is that defaulters are powerful people. We have banking without the thinking that banks are not for political favour. But should be a bastion for the country's economy. 

More News For this Category

Razzak: Demise of a superstar

LEGENDARY actor Abdur Razzak, who in Bangladesh popularly known as 'Nayak Raj Razzak', breathed his last at United Hospital on last Monday. Entire film industry of our country is

None to oversee and run the Insurance Sector

ACCORDING to the Insurance Development and Regulatory Authority (IDRA) sources, the organisation's top posts are still vacant, meaning - it can neither hold Board Meetings nor take decisions on

Change in South Asian monsoon pattern led to floods

Farid Ahmed  :Aid agencies warn of a serious unfolding humanitarian crisis as floodwaters continue to inundate new areas of three South Asian countries, forcing millions of people to flee their

Curb nuclear weapons, ban them to prevent war

Carl Bildt (Core Issues) :No one with any connection to reality could seriously believe that the governments of China, Israel, Pakistan, and Russia will simply abandon their nuclear weapons because

Corporate philanthropy

David Callahan :Once upon a time, corporate philanthropy was a pretty simple enterprise. Companies would sprinkle around grants for various good works, mainly in the communities where they operated, with

Readers’ Forum

Adulterated fertilizers in local markets Media reports said, fake and adulterated fertilisers have flooded the local markets causing harms to our agricultural production. The fertility of the soil is also

Terrorist attack in Spain is abhorrent

TWO back-to-back terrorist attacks have occurred in Spain shocking the peace-loving people again all over the world. On Thursday, a van sped down a pedestrian walkway, hitting scores of people

High risk in railway travel through flooding zones

A FATAL train accident was narrowly averted in Tangail on Sunday dawn as locals from a nearby mosque stepped in to stop a train only few yards from a bridge

Creating a safer world for children

Susan Bissell :One year ago marked a historical milestone in realizing the rights of children: the launch of the Global Partnership to End Violence Against Children. Amid a flurry of

Get Trump off Twitter to save the world

Jeffrey D Sachs  :America's political institutions and formal processes are diminished. The federal government is hemorrhaging scientific expertise, as researchers leave or are purged, and as agency budgets are targeted