AS many as 57 scheduled commercial banks including 4 state-owned units have been operating in a small country like ours and every year a good number of branches are being opened without any real necessity. Most of these branches are opened in the commercial hubs of cities without proper marketing assessment and/or study ignoring the needs of the rural and remote areas of the country. As a result, these newly opened branches are running through unhealthy and unethical competition. In most of the cases, they purchase loans of other reputed banks including default loans in defiance of standard banking norms and practices. These banks also offer high deposit rates that are very risky for banks. Furthermore, service charges levied by various banks are unethically high, and without any proper justification. Bangladesh Bank should immediately step in to stop these unethical practices, otherwise the banking sector will be in further turmoil in future.
Md. Zillur Rahaman
Islami Bank Bangladesh Ltd.
Lalmohan Branch, Bhola.
zrbbbp@gmail.com
NB: View expressed in the above letter is solely personal and does not reflect the views of IBBL