Regaining trust in banking sector

Bangladesh's financial sector stands on the brink of significant transformation as the newly formed interim government strives to restore stability. Due to mismanagement, unresolved debts, and widespread corruption, public confidence in the banking sector has been severely undermined. To tackle these issues, the interim government has begun implementing reforms aimed at enhancing accountability and transparency within financial institutions, including limits on loan extensions and the writing off of bad debts.

However, these measures may not be sufficient. If fundamental problems such as political interference in bank governance and the lack of punishment for defaulters remain unaddressed, the situation may not improve. Experts have stressed the need for banks to adopt stricter lending criteria and enhance corporate governance to prevent further crises.

Over time, the banking system has left many sceptical, particularly when influential individuals appear to evade justice. For the interim government's reforms to be effective, they must lead to tangible and visible improvements. Without significant changes, restoring public trust and strengthening the financial climate will remain an elusive goal.

KaziAnikaBinteAtaur, Student

North South University

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