The prime minister's adviser for finance and planning ministries, Dr Rashed Al Mahmud Titumir, has said the government is moving towards digital transformation to build a transparent and inclusive economy.
"We are working on introducing a 'one citizen, one card, one digital wallet' system, which is expected to start in the next fiscal year," he told an event organised by United Commercial Bank (UCB) at Pan Pacific Sonargaon Dhaka on Sunday.
He addressed the programme as the chief guest.
Titumir said the initiative would help bring all citizens under the banking network by ensuring that everyone had a bank account.
The government was also working on providing a digital wallet for every individual, he said.
The adviser said given the country's current economic reality, the government aimed to shift from a consumption-led model to an investment-driven growth system to ensure sustainable development.
At the same time, job creation was being given the highest priority, he said.
Titumir noted that increased investment would boost production, which, in turn, would create employment and ultimately increase revenue collection.
The economist said the banking sector was currently facing a multidimensional crisis, including structural weaknesses, policy challenges, and a past culture of favouritism and patronage. As a result, a crisis of confidence had emerged in the banking system, which would not be easy to overcome, he said.
He said non-performing loans (NPLs) had reached "mountainous" levels and the true picture of default loans had been obscured through rescheduling facilities.
According to him, if forensic audits were conducted, the actual volume of default loans could be even higher.
At the same time, a significant imbalance had emerged in the loan-to-deposit ratio, with many banks exceeding international standards and operating under risky conditions, he said.
Given the current situation, Titumir emphasised three key reforms to restore stability in the banking sector.
First, hidden and excessive charges imposed on customers must be reduced to rebuild trust.
Second, banks need to develop their own incentive mechanisms to increase deposits.
Third, risk management systems must be overhauled as weak risk management is one of the main reasons behind rising default loans.
Titumir said the failure of market-based regulatory institutions to function properly had led to a breakdown of discipline in the banking sector. Without ensuring the accountability of audit firms, credit rating agencies, and the related professionals, improvement would not be possible, he said.
He warned that excessive control and conflicts of interest were increasing systemic risks.
Highlighting the overall economic situation, he said the growth rate had declined and poverty had increased.
The rise in poverty, particularly among youths and women, was a matter of concern, and the industrial sector was also experiencing negative growth, which was a warning sign for the economy, he said. "If inflation persists for a prolonged period, it will further increase the number of poor people," he added.
The adviser stressed that active participation from the private sector was essential for achieving the desired economic transformation.
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