Mindset change seen critical to restoring health of state banks
Sunday, 17 October 2010
FE Report
Speakers at a meeting Saturday underscored the need for changing the mindsets of bankers serving with state banks to root out corruption from the country's banking sector.
They also said borrowers must repay loans to help public banks do business with profitability.
The appeal came at an exchange of views meeting on "Corruption in Accessing Industrial Credit: Improving Transparency of State-owned Commercial Banks" with the journalists, held in the city.
International Business Forum of Bangladesh (IBFB), a business platform, organised the meeting, where its president Mahamudul Islam Chowdhury presided over the meeting, moderated by journalist Zahiduzzaman Faruque.
Former chairman of Transparency International, Bangladesh, Prof Muzaffar Ahmed said though state-owned banks disburse huge industrial loans, economic return is negative.
He also said every chairman of the banks must follow the rules and regulations of the banks before giving loans to anybody, otherwise the bank will be in problem in future.
"Research units for every bank are necessary. The banks' boards of directors should discuss the performance with the depositors, clients, employees and borrowers after two months," said Mr Ahmed.
Keynote speaker Khondkar Ibrahim Khaled, chairman of Bangladesh Krishi Bank, said all state banks are operating "peculiar" business where no modern technology is used, despite good human resources.
He, however, lauded the state banks for operating in rural areas where the presence of private banks is rare.
Khondoker Bazlul Haque, Chairman of Agrani Bank, said the government is responsible for weak activities of the banks and bureaucrats can play an important role in reducing corruption from the country.
"Influential people with political affiliation in our country ask for loans and they do not pay off the credit," he said.
Former chairman of Janata Bank said managing directors (MDs) are promoted as per the decision of the ruling government, so corruption originates from the top level.
Mahbubul Alam, editor of The Independent, Reazuddin Ahmed, Editor of News Today, Saiful Bari, chief adviser of ATN Bangla,
Dr. Mizanur Rahman Shelly, Chairman of the Centre for Development Research Bangladesh, Dr Iftekharuzzaman, Executive Director of TIB, also spoke at the meeting.
Speakers at a meeting Saturday underscored the need for changing the mindsets of bankers serving with state banks to root out corruption from the country's banking sector.
They also said borrowers must repay loans to help public banks do business with profitability.
The appeal came at an exchange of views meeting on "Corruption in Accessing Industrial Credit: Improving Transparency of State-owned Commercial Banks" with the journalists, held in the city.
International Business Forum of Bangladesh (IBFB), a business platform, organised the meeting, where its president Mahamudul Islam Chowdhury presided over the meeting, moderated by journalist Zahiduzzaman Faruque.
Former chairman of Transparency International, Bangladesh, Prof Muzaffar Ahmed said though state-owned banks disburse huge industrial loans, economic return is negative.
He also said every chairman of the banks must follow the rules and regulations of the banks before giving loans to anybody, otherwise the bank will be in problem in future.
"Research units for every bank are necessary. The banks' boards of directors should discuss the performance with the depositors, clients, employees and borrowers after two months," said Mr Ahmed.
Keynote speaker Khondkar Ibrahim Khaled, chairman of Bangladesh Krishi Bank, said all state banks are operating "peculiar" business where no modern technology is used, despite good human resources.
He, however, lauded the state banks for operating in rural areas where the presence of private banks is rare.
Khondoker Bazlul Haque, Chairman of Agrani Bank, said the government is responsible for weak activities of the banks and bureaucrats can play an important role in reducing corruption from the country.
"Influential people with political affiliation in our country ask for loans and they do not pay off the credit," he said.
Former chairman of Janata Bank said managing directors (MDs) are promoted as per the decision of the ruling government, so corruption originates from the top level.
Mahbubul Alam, editor of The Independent, Reazuddin Ahmed, Editor of News Today, Saiful Bari, chief adviser of ATN Bangla,
Dr. Mizanur Rahman Shelly, Chairman of the Centre for Development Research Bangladesh, Dr Iftekharuzzaman, Executive Director of TIB, also spoke at the meeting.