Former Bangladesh Bank Governor Mohammed Farashuddin has suggested for ensuring exemplary punishment for the loan defaulters and their supporters.

The eminent economist thinks that political mandate of the government is important to bring order in the country's banking sector.

"It is not difficult to catch those who have looted money from banks by opening fake accounts. The regulatory body should act strongly here," Dr Farshuddin told media.
He also said that the directors of state-owned banks are nominated by the government.

"When the loan defaulters and their supporting bankers will be brought to legal process, the situation will improve gradually," the former governor added suggesting removal of corrupt bankers.

Dr Farasuddin said that International Monetary Fund (IMF) has shought good governance in the banking sector of Bangladesh.

"It must be done. Nowhere in the world is there such a rule as waived interest in our country," he said.

The former governor thinks the process of interest waiver supports fraud in banking sector.

"False declaration in letter of credit or LC is not possible unless bankers are involved. No one involved in the Hallmark scam has been convicted," added Dr Farashuddin reiterating his stance for exemplary punishment for corrupt ones in banking sector.

The non-performing loan stood at Tk 1.34 trillion in banking secror according latest data of Bangladesh Bank.

BDST: 1228 HRS, FEB 16, 2023
MN/SMS