Preserving the gains from FSRP

THE financial sector reforms programme (FSRP) which was carried out over the years could, by and large, contribute to the improvement of the situation, particularly of the banks. Under the FSRP, the country's private commercial banks (PCBs) were also supervised well by the central bank. There were, thus, some positive changes in most of them. Most of the PCBs which were earlier identified for gross irregularities in their loan administration, for not maintaining adequate provisions against loans and for other ills, were persuaded to come out of their troubled condition with the close monitoring and directives of the Bangladesh Bank (BB) and could shed their status as 'problem' banks. The nationalised commercial banks (NCBs) also went through a reform process and were seen to be improving their functioning.
However, the takeover of a PCB, the Oriental Bank, by the Bangladesh Bank at a time when it seemed about to collapse, provided a negative signal, indicating the need for strengthening things further in the financial sector. Clearly, the efforts for preserving the gains from the FRSP are required on a sustained basis.
Ruhul Amin
Nakhalpara, Tejgaon
Dhaka