BB Governor for HC bench to resolve financial dispute-related cases

Bangladesh Bank Governor Dr. Atiur Rahman Saturday stressed the need for establishing a bench in the High Court to resolve financial dispute-related cases.
"If a bench can be created only for hearing financial cases, many cases related to financial irregularities will be resolved at a shorter time and more transparency will be ensured," Dr. Atiur Rahman said while speaking at a workshop on Corporate Governance Regulations for Banks in Bangladesh.
International Finance Corporation (IFC) organised the workshop in a city hotel attended by directors and high officials of Banks.
Bangladesh Bank Deputy Governor Sitangshu Kumar Chowdhury presented a keynote paper.
IFC Corporate Governor Specialist Lopa Rahman, IFC Country Manager for Bangladesh, Nepal and Bhutan Kyle F Kelhofer and Global Manager of Corporate Governance at IFC  Darrin Hartzler, Bank Asia Director Rumee Hossain, Supreme Court Advocate Barrister Sheela R Rahman, United Commercial Bank Ltd's vice-chairman Sharif Zahir spoke at the workshop.
The Governor said the central bank is mulling over increasing benefits of independent directors in the banks to attract quality directors.
Replying to criticisms over issuance of recent large loan restructuring guidelines, he urged banks to think before approving loans.
"You gave loans to wrong people, Bangladesh Bank did not," he said bankers present at the workshop adding the central bank had two options; close eyes or let them die.
"We cannot let a business group die as many questions are related here including employment of hundreds of people," he said.
The governor said attaining high quality of corporate governance is important for creating and maintaining investor confidence in corporate businesses and much more so for banks as they are highly leveraged and engaged in risk bearing investments with depositors' funds in a fiduciary role.
He said corporate governance lapses precipitating the last global financial crisis came about largely from aberrant motivations of errant bankers going out on their limbs for quick gains from speculation and mis-selling of opaque, inappropriate financial service packages at the cost of longer term institutional viability.
"We at BB have therefore gone about setting the motivations oriented in the right direction alongside overseeing compliance with corporate governance related laws, regulations and guidelines. Our financial sector Corporate Social Responsibility (CSR) mainstreaming initiative taken up in 2008 at the onset of the global financial crisis is now a full blown initiative of ingraining socially and environmentally responsible financing in the corporate ethos of Bangladesh's financial sector."
Giving thanks to the banks for cooperating in implementing CSR, he said: "I look forward to the same commitment and proactive engagement towards forging and deeply ingraining the culture of corporate governance excellence in terms of clarity in roles, responsibilities and accountabilities, risk management capabilities, transparency, and fair treatment of all stakeholders including depositors, minority equity holders and other creditors."
The governor said BB will continue to support robust IT infrastructure already in place for online reporting and data base access. Setting up a world class Centre for Leadership Excellence in the Financial Sector (CLEFS) in Chittagong is in progress which will primarily focus on issues related to better corporate governance in the financial sector.
"We hope to bring in world class experts to raise the quality of discourses on the desired corporate governance excellence."
Deputy Governor Surendra Kumar Sur Choudhury presented keynote paper in the workshop on Corporate Governance Regulations for Banks in Bangladesh.
He said well-informed board of directors are more engaged and, in turn, have a positive impact on the health of a bank.
"Where oversight is strong, problems are fewer and less severe; are addressed and corrected in a timely fashion," he said.
He said the board must be knowledgeable, well-informed and active in overseeing the management of their banks.
 Bank Asia Director Rumee Hossain emphasized on the implementation of the guidelines.
He said banks do not have expertise in many sectors to embrace new policies formulated by central bank.
Mr. Hossain also urged BB to look into how benefits of independent directs can be increased.  
Sharif Zahir said banks board should be composed of well-known people, instead of family members gathering.
He said directors need to give enough time to a bank, sometimes board consists of family members do not do that.
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