BB Governor spent 65 days abroad in 9 months

Bangladesh Bank Governor Dr Ahsan H Mansur has triggered anxiety in the financial sector with remarks warning that widespread fraud and looting have pushed 10 banks to the verge of bankruptcy, with some barely staying afloat.

Speaking at various events after taking office on 14 August last year, his comments—particularly about merging six Shariah-based banks by July—have raised alarm among depositors and drew sharp criticism from banking experts.

Taufiq Ahmed Choudhury, former Director General of the Bangladesh Institute of Bank Management (BIBM), said, “When a Governor publicly expresses such fears, it naturally heightens panic among depositors. Governors should refrain from making statements that suggest banks are failing.”

Following his remarks, customers flocked to banks in droves to withdraw their savings. Many were met with cash shortages, non-functioning online services and the hassle of visiting specific branches to access their accounts. Fears over the safety of deposits have surged.

In response, Bangladesh Bank initially announced it would provide liquidity support through interbank markets, not by printing money. But facing mounting pressure, the governor eventually relented—injecting Tk22,500 crore by printing currency. Still, the crisis persisted. Many depositors continue to struggle to access their funds, with some banks limiting daily withdrawals to Tk5,000. Thousands of clients remain eager to withdraw all their deposits as soon as funds are available.

Ironically, while calling for public confidence in banks, the governor’s own statements have fueled instability in the sector.

According to official records, between September 2024 and May 2025, Dr Ahsan H Mansur undertook nine overseas trips to as many countries, spending a total of 65 days abroad.

His travels included 9 days in Singapore and Thailand for medical purposes, 27 days in the United States attending IMF and World Bank meetings, and visits to India (3 days), South Korea (3 days), Djibouti (5 days), Japan (6 days), London (7 days) and Dubai (5 days) to participate in various international conferences and policy discussions.

The events ranged from forums on inflation, growth, and Islamic finance to global best practices in payments and asset recovery.

Observers say this is an unprecedented number of foreign trips for any Bangladesh Bank governor.

Previously, such events were often attended by mid-level officials. But Dr Mansur chose to represent the central bank himself. He also reportedly attended relatively minor events, such as inaugurations of credit card services or private bank branches.

Critics argue that international trips funded by taxpayers must be justified, transparent and result-oriented. The public remains eager to know: What gains have been made? Have stolen or laundered funds been recovered? Have any legal actions been initiated abroad? To date, there is little progress on these fronts and foreign reserves remain under strain.

While some defend his international presence as essential for safeguarding Bangladesh’s global financial image, others have questioned the timing and frequency of the trips—especially amid severe domestic challenges such as liquidity shortages, depositor anxiety and bank mergers.

Since taking office, Dr Mansur has spent 91 days on public holidays (Fridays, Saturdays, Eid, and national days) and 65 days abroad, amounting to 156 non-working days out of 284. He has reportedly worked just 128 days in office.

Adding fuel to the fire, Dr Mansur recently said in a media interview that 10 weak Shariah-compliant banks would be merged into two stronger Islamic banks. His remarks triggered fresh panic among customers and investors of these banks. Critics accused him of one-sided rhetoric that deepens mistrust rather than restoring it.

Economists and banking analysts say Bangladesh Bank had little policy autonomy over the last 15 years (2009–2024), which worsened issues like loan defaults, mismanagement and eroded confidence in the financial sector. Initially, the business community welcomed Dr Mansur’s appointment, but optimism is fading amid rising interest rates, inflation, job losses, and the ongoing energy crisis.

Since his appointment, the policy rate has been increased four times, with lending rates now exceeding 17%, and private sector credit growth has fallen to 8%.

BIBM’s former chief Taufiq Ahmed Choudhury reiterated, “Everyone knows the banking sector is under stress. But when the governor himself amplifies those concerns, it worsens the panic.”

He said, “Foreign trips are sometimes necessary for the Governor. I’ve also made such official visits.”