Depositors to lose trust on banks

Opposing the formation of an inquiry commission, the lawyer of bank owners warned it will create "mistrust" among depositors.

"If an inquiry commission is constituted to probe into the irregularities in the banking sector, this will create mistrust among the people and the depositors." lawyer of the Bangladesh Association of Banks Shah Monjurul Hoque said.

He issued the warning on Wednesday at the hearing on the Bangladesh Bank circular giving defaulters the opportunity to reschedule loans on easy terms.

"This will prove that the existing laws are failing to tackle the irregularities in the banking," the lawyer said.

The central bank's circular allowing defaulters to reschedule their loans extending the repayment period for 10 years and get further loans is not "conflicting with the Constitution and other laws of the country," he said.

After the hearing, the High Court bench of Justice J B M Hassan and Justice Md Khairul Alam adjourned it until Thursday.

Lawyer Manzill Murshid was present in the court on behalf of the Human Rights and Peace for Bangladesh, a rights group. Lawyers Shameem Khaled and Munirujjaman were present defending the Bangladesh Bank.

The rights group filed the writ petition challenging the legality of the central bank circular.