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The increasing risk in the banking sector has made it imperative to establish good governance

Despite the various initiatives of Bangladesh Bank, the situation of this sector is gradually deteriorating. According to the Central Bank’s Financial Stability Assessment Report released on Monday, the level of risk in the banking sector has increased in September compared to last June.

The number of banks exposed to risk due to defaulted loans, interest rates, exchange rates has also increased during this 3-month period. At the same time the overall capital of the banks has decreased. However, by increasing the credit status, the assets of the banks have increased and defaulted loans are being concentrated. Now more than 45 percent of the total defaulted loans are with the top five banks.

The report also revealed that last June, where defaulted loans increased in four banks, in September it increased to five. Besides, last June one bank was at risk due to interest rate but in September it increased to two. Central Bank publishes this report every 3 months. This year’s report is for the June-September quarter of last year, which is published after about 7 months.

We think that the transition from the current situation should bring order in the management of banks. Aggressive banking must be stopped. Managers need to reduce pressure. The central bank needs to take more stringent measures to retain customer confidence. Defaulters can no longer be exempted.

It should be remembered that banks are the lifeblood of the economy. If the banks are weak, the economy will also be weak. Banks are now unable to provide loans as per the demand of non-economy due to liquidity crisis. To overcome this crisis, the deposit should be increased. Corruption must be prevented. Debt must be collected. Initiatives should be taken to find out the correct account of the money that has been smuggled abroad.

As a result, the dollar crisis in the country will be reduced to some extent. Of course, it goes without saying that the defaulters cannot be caught without a diplomatic commitment. According to experts, all those in the country who have embezzled bank money through fraud or forgery are somehow under the shadow of the government. They are very influential. So the bank will not be able to catch them unless they get the message from the government. It is desirable that the government takes these issues into account and takes initiative to bring the banking sector back to normal.