Banks must be kept free from political interference: BB governor

Bangladesh Bank (BB) Governor Ahsan H Mansur has underscored the need for keeping all banks free from political interference in a bid to prevent a looting spree in the financial sector.

“We must stop political interference in the banking sector so that no one can establish a reign of plunder,” Mansur, also a seasoned economist, said while addressing a programme held at the BIBM office in Dhaka on Wednesday.

He also warned that no one would be allowed to flee the country after plundering the people’s money from banks.

Underscoring the need for reforms in banking and non-banking financial sectors to ensure good governance, he said the Bangladesh Bank undertook a series of initiatives, including the formation of a taskforce, introduction of a new law and amendment to the existing Bank Company Act after the political changeover on 5 August.

“As a result, we see, some ruined banks have started to bounce back while many others remain in a crippled state,” said the BB governor.

The central bank will intervene in the boards of other banks in order to protect the customers’ interests, he said, hinting at the dismissal of another bank’s board within a week under his jurisdiction.