Reviving the banking sector requires coordinated action among all relevant government bodies and data-driven resolution of weak banks to rebuild investor trust without relying on government support, experts said yesterday.
Speaking at a roundtable on the issue, organised by Policy Exchange Bangladesh (PEB) in Dhaka, they underscored the need for a unified approach involving the Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), National Board of Revenue (NBR), Ministry of Finance, and Ministry of Law.
Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, said strong coordination between the central bank and the BSEC is essential for transparent restructuring and called for a clear roadmap.
"Transparency in all actions will improve confidence," he said, adding that while recapitalisation is vital for financial stability, improving governance is equally important.
"Independent directors have become dependent. This should be changed," he added.
Md Mahbubur Rahman, additional managing director of City Bank, suggested adopting different strategies for banks based on their financial health.
"The revival of some banks is questionable. They should not be treated the same as others," he said, stressing the need to follow international best practices.
Hassan O Rashid, CEO of Prime Bank, warned that rising non-performing loans (NPLs), governance lapses, and poor coordination among regulators, including Bangladesh Bank, the BSEC, and the NBR, are deterring investment and undermining market confidence.
He called for restoring governance, ensuring realistic provisioning, undertaking legal and regulatory reforms, developing a functional bond market, establishing coordinated oversight, and pursuing data-driven resolution of weak banks.
Meanwhile, AF Nesaruddin, senior partner at Hoda Vasi Chowdhury & Co, held the central bank partly responsible for the sector's current challenges.
"The Bangladesh Bank allowed banks to keep lower provisions than required through tripartite meetings," he said.
M Masrur Reaz, chairman and CEO of PEB, moderated the session.
Saiful Islam, president of the DSE Brokers Association of Bangladesh, Abdul Wadud, independent director of Al-Arafah Islami Bank, and Syed Afzal Hasan Uddin, managing partner of Syed Ishtiaq Ahmed & Associates, also spoke at the event.
