Good governance a must in banking sector: Ex-BB governor Salehuddin

Salehuddin Ahmed, former governor of Bangladesh Bank, has underscored the need for ensuring good governance to eradicate irregularities in the country’s banking sector.

“The ongoing crisis in the banking sector cannot be resolved solely through bank mergers. In addition, it is imperative to prioritise good governance to get rid of the situation,” said the former BB governor on Saturday.

He made the remark after attending a programme on shadow parliament debate competition focusing on bank mergers aimed at bolstering good governance in the banking sector, held in Dhaka on Saturday.

The seasoned economist also said that the amount of default loans is increasing in the country gradually due to the lack of the government’s political will and the inaction of the central bank in this regard.

Meanwhile, Padma Bank PLC, a fourth-generation bank that has been struggling with a liquidity crisis for several years, has initiated the official process to merge with Shariah-based private commercial Exim Bank PLC.

Referring to the development, Salehuddin said the authorities concerned should remain alert so that the troublemakers involved in the irregularities cannot go unchallenged through the loopholes of the bank merger.

At the same time, the authorities should pay utmost attention to ensure the security of the depositors’ funds and the job security of employees in the sector, he said.