Friday, July 20, 2018 | ePaper

Experts at CPD dialogue

Banking sector at risk

Govt to take action against looters: Minister

  • Print
Staff Reporter :
Planning Minister AFM Mustafa Kamal on Sunday said that the government would take action against those whoever is the guilty for looting bank money.
"We are determined to do it and anybody will not spare if found guilty, and already some managing directors of banks are in jail," he made the comment while speaking at 'CPD Budget Dialogue 2018' as the chief guest at Lakeshore Hotel in the city.
Chairman of Centre for Policy Dialogue (CPD) Prof Rehman Sobhan, who chaired the function, expressed grave concern about the country's present state of the banking sector, saying the industries' heavy dependence on commercial banks for loans is unusual.
"Commercial banks are heavily dependent on short-term deposits to invest in long-term projects," he said.
CPD executive director Dr. Famida Khatun made a presentation on the analysis of the 2019 national budget. Besides Planning Minister Mustafa Kamal former commerce minister   and BNP standing committee member Amir Khasru Mahmood Chowdhury also addressed the occasion. Prof. Rehman Sobhan said everybody is familiar with the non-performing loans (NPL), which started during late president Ziaur Rahman and carried over by the successive governments over the years, which is not a problem of this government or that government. Historically, he said, the large industrial projects are largely financed by capital market and specialised banks. "But now the capital market is non-functioning and industries are heavily dependent on commercial banks for long term loans," he said. The Planning Minister, however, disagreed with the prevailing grim situation in the banking sector. "Everybody is talking about  the looting of the banking sector. But I don't think the situation is that much worse that banks are failing to pay depositors," he said.  Representatives from different government and non-government bodies and former bureaucrats also spoke on the occasion while CPD distinguished fellow Prof Mustafizur Rahman conducted the function.
Prof. Rehman observed that these commercial banks' dependence on short-term deposits to invest in long term projects are not usual practice. "This is totally unusual and this is a dangerous situation for a sustainable financial system". He also said Bangladesh is much more behind in economic progress compared with Vietnam and other neighbours. Bangladesh exports only $40 billion while Vietnam's export is over $200 billion, he said. Amir Khasru Mahmood Chowdhury said income of the 5 per cent people in the top level increased enormously that none can imagine. "These people are involved in the bank looting. But there is no action against them by the government. Rather, the government is helping them. Who are they everybody knows it," he said. The BNP senior leader said these people looted share market and are buying properties in Dubai, Canada and other countries. "If NBR wants to catch them, they can easily identify them". He criticised the government for decreasing taxes of bank owners and increasing the taxes of the bottom line people. He observed that the government has failed to create skilled manpower as education sector was destroyed by the work policies. He said Bangladesh's position in human development index was degraded and now 40 per cent educated youth are unemployed. State Minister for Planning and Finance Abdul Mannan said there is no scope to say everything is lost by the bank-loot. He said those people who are unemployed are in such situation by their own choices. "There are so many ways to be employed under the government's different initiatives. But they don't take those". Metropolitan Chamber president Nihad Kabir said attention for skill development of the workforce is essentially needed is not duly focused in the national budget. She demanded incentives for export promotion. Ganosastha chief Dr. Zafrullah Chodhury said the national budget was insufficiently focused on social and health issues.
President of Fair Election Monitoring Alliance (FEMA) Munira Khan said after the lowering the interest rates on bank deposits, people are not being interested to deposit their money in the banks. "If depositors don't deposit, how can banks collect fund and invest those money in industries", she said.

More News For this Category

Another Janata Bank scam of Tk 5130 crore

Staff Reporter :A leather goods export company has withdrawn Tk 1075 crore from the state-owned Janata Bank using fake documents, Bangladesh Bank investigation found.Crescent Group, which owes Tk 2760 crore

Amid criticism over Putin summit, Trump wants second meeting

WASHINGTON (AP)  :President Donald Trump said Thursday he wants a second meeting with Russia's Vladimir Putin to start implementing ideas they discussed at the Helsinki summit. Pushing back against criticism

 Repression may turn into anti-govt agitation

Repression may turn into anti-govt agitation

DU Correspondent :Around a hundred teachers of Dhaka University and other three public varsities at a solidarity rally in Dhaka University (DU) campus on Thursday have asked the government to

SoEs pose big fiscal risk

Kazi Zahidul Hasan :State-owned Enterprises (SoEs) continue to suck money from the state coffer owing to accumulated losses and outstanding loans to public banks posing a big fiscal risk for

Hottest day of the year

Staff Reporter :The residents of the capital city on Thursday experienced the hottest day of the year. According to the Met Office, the temperature in the capital was 37.6 degrees

 66.64pc pass in HSC exams

66.64pc pass in HSC exams

Staff Reporter :The pass rate of Higher Secondary Certificate (HSC) and its equivalent examinations is 66.64 percent compared with 68.91 percent last year. A total of 8,58,801 examinees, out of

2 'drug peddlers' killed in Cox's Bazar 'gunfight' Over 100 held in Geneva Camp

Staff Reporter  :Two alleged drug peddlers were killed in a gunfight with joint forces, comprising Rapid Action Battalion (RAB) and Border Guard Bangladesh (BGB) in Himchari of Cox's Bazar early

White House struggles to contain pol outcry

WASHINGTON (Reuters) :The White House struggled on Wednesday to contain a political outcry and confusion over U.S. President Donald Trump's summit with Russian President Vladimir Putin, denying Trump ever meant

4 held over SB Inspector murder

Staff Reporter :Detectives in a drive arrested four persons, including three women, from city's Hazaribagh and Badda areas on Wednesday night in connection with the murder of Mamun Emran, Inspector

Man commits suicide after killing wife, daughter in Gazipur!

Staff Reporter  :A man has committed suicide after allegedly killing his wife and daughter over extra martial family issue.The bodies were found dead in their house at Haidarabad in Gazipur