Restoring confidence in banking sector

Depositors of five or more commercial banks face uncertainties as they cannot access their funds. This is troubling, particularly when some managing directors continue to withdraw their salaries. Although the central bank has extended some support to the banks, more is needed. The clients also receive no assurances regarding when the liquidity crisis will improve.

In a country like Bangladesh, the previous government permitted a number of banks to obtain operational licenses. Creditworthiness and viability were not considered at that time. Thus the crisis aggravated and led to the merger of weaker banks. The interim government needs to boost efforts to restore confidence in the banking sector.

Rafid Alam

Dhaka

[email protected]