Dhaka Times Report. Bangladesh Bank approved 6 new banks due to political considerations. Economists of the country have expressed the opinion that giving a new bank is not timely in the current economic reality of the country. Many of them said that there was no justification for approving new banks in the country in the current economic reality. Ko Keo said that due to political considerations, the bank may cause chaos in this sector. Even as a result of this, the surveillance, monitoring and observation of the central bank will become difficult.
Expert opinion
The former adviser to the caretaker government on the approval of the new bank. AB Mirza Azizul Islam said that there was no justification for approving new banks in the country in the current economic reality. He thinks that the growth of deposits in the banking sector has already decreased. However, if new banks come, the uneven competition in collecting deposits will increase. As a result the interest rate will also increase. Again, to meet the profit target, some banks will take risks and distribute loans. As a result, the level of credit risk will increase. He also said that in my opinion, in the present reality, after 47 banks, no more banks have been approved. Because there is already a shortage of skilled people in the banking sector. The efficiency of officials will not increase when new banks come. In order to survive in the competition, the salaries and allowances of the officers and employees will increase. As a result, the operational cost of the bank will increase. All in all there was no justification for the new bank.
In this regard, the former governor of Bangladesh Bank. Saleh Uddin said, according to the current economic scope of the country, it is not right to give so many banks. In particular, granting approval to the bank for political considerations will create chaos in this sector. He said, if the bank had given it for financial needs, then it would have been one thing. Those who are in the ownership of the approved banks, it seems that there will be no benefit to the common people through these banks. Rather, the banking sector will face challenges. Uneven competition in deposit collection will increase. Interest rates will also increase. He also said that there was no need for new banks in Bangladesh compared to other countries. But old banks could be used to reach rural areas. He mentioned that, being a new bank, on the one hand, there will be a shortage of skilled people in many banks. On the other hand, the salaries of officials will increase without any reason. The operational cost of the bank will increase.
Regarding the approval of the new bank, economist Professor Abu Ahmed said that it would be best if the approval of the new bank was given due to economic needs. It has already been said that the bank will be given due to political considerations. I am not aware of any bank approval anywhere in the world due to political considerations. He said, as a result of the approval of new banks, the central bank's surveillance, monitoring and observation will become difficult. He suggested to fix those banks which are running as weak and problem banks among the banks in the country. In addition to uneven competition in deposit collection, interest rates will rise. I heard that these banks will bring new products. So where is the problem of old banks bringing new products?
In this regard, the executive director of the private research institute, Center for Policy Dialogue, CPD, Prof. Dr. Mostafizur Rahman said that the process in which the approval of the new bank was given was questionable. Therefore, as a result of this, the challenge will increase in the supervision of Bangladesh Bank, the regulatory institution of the banking sector. There may be renewed stress in financial affairs. If the tension between the new bank and the old bank regarding the collection of deposits increases, it will have a negative impact on the entire banking sector. He said, recently, questions have been raised about the surveillance of Bangladesh Bank. Consequently, new banks may create problems rather than solutions. He mentioned that the financial sector is very sensitive. So it is important to always be careful about this sector. There is no alternative to increase the monitoring activities of Bangladesh Bank to keep this sector safe.
It should be noted that on April 8, Governor Dr. In the meeting of the board of directors of Bangladesh Bank under the chairmanship of Atiur Rahman, the approval of 6 new private banks was given. The newly authorized banks are - Union Bank, Midland Bank, Madhumati Bank, Farmers Bank, South Bengal Agriculture and Commerce Bank and Meghna Bank.
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