Friday, October 20, 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

Move about replacing garment monitoring agencies

BGMEA leaders have decided not to extend agreement with Accord and Alliance - two buyers assigned inspection agencies to monitor remediation of garment factories in Bangladesh beyond their tenure

Mr Xi`s new vision for China

CHINESE President Xi Jinping has laid out a far-reaching vision for a more prosperous nation and a dominating role for China in the world as the US President Donald

100 million girls unprotected against child marriage

Tharanga Yakupitiyage :Over 20,000 girls are married before the age of 18 every day around the world as countries continue to lack legal protections, according to a new study.Concerned over

Trump, Korea and the ban

Dr. Joseph Gerson :There is much to celebrate in the Nobel Peace Prize Committee's decision to award this year's prize to the International Campaign to Abolish Nuclear Weapons (ICAN).Sculpture depicting

Artificial Intelligence : The end of the human race?

Patrice Caine :During the height of summer, an open letter to the United Nations warning of the dangers of Artificial Intelligence, signed by Tesla CEO Elon Musk and more than

Readers’ Forum

The UNESCO EnvoyThe UNESCO recently made Jordanian Princess Sumaya a UNESCO Special 'Envoy for Science for Peace' (2017-2019). This appointment has been given to the Princess in recognition of her

Higher level of rural poverty call for targeted actions

THOUGH we have gradually achieved improvement in our socio-economic conditions poverty level continues to be a significant problem in the country with about 47 million people are still living

Diplomacy must work in Korean peninsula

THE Korean peninsula is closer to war again as a North Korean official reaffirmed on Monday Pyongyang's commitment to developing a long-range intercontinental ballistic missile capable of reaching "all

What forces are fueling Myanmar's Rohingya crisis?

Eleanor Albert  :Discriminatory policies of Myanmar's government since the late 1970s have compelled hundreds of thousands of Muslim Rohingya to flee their homes in the predominantly Buddhist country. Most have

Another environmental catastrophe looms in Central Asia

Adrian Van der Meer :During the UN week in New York in September, the media were dominated by headlines about North Korea, Iran, Syria, migration and fighting terrorism. These are