The feasibility of a goldsmiths' bank
Friday, 18 December 2009
Prof. M. Sadeq
History of Banking bears adequate testimony that the goldsmiths are the forefathers of modern banking. The goldsmiths are well-reputed for their professional integrity, honesty, solvency, safety and reliability. These qualities are essential ingredients for a good banking institution. With these vital qualities, along with commendable and standard technical expertise, a banking institution can rise to its highest height of success within a short time. It is sad that in spite of being the predecessors of modern banking, the goldsmiths, now-a-days, are neither in their proper position as pioneers of banking nor being treated appropriately by bankers as beneficiaries. As pioneers of modern banking, their position in the banking arena should have been prominent and conspicuous by their active presence and participation in the promotion and development of banking institutions. The present-day banking establishments are largely promoted by industrial magnets, political personalities and others well-to-do persons who are neither bona fide goldsmiths nor their descendents.
There are hundreds and thousands of bona fide goldsmiths who are engaged in goldsmiths' profession and jewellery business in the country. Among them, a considerable number of goldsmiths and jewellers are financially so sound and established that they can easily promote a banking institution which may be named as "Bangladesh Goldsmiths Bank Ltd" and incorporated under the Banking Companies Act. It may be added here that the goldsmiths are not only traders in gold, gold-ornaments, they are also bankers in their individual capacity, as they carry on the business on deposit collection and lending of money to the needy borrowers side by side with their original business of gold trade.
Almost all the banks, now operating in Bangladesh, both local and foreign, have been established by the entrepreneurship of people who had no banking heritage and tradition. As against that, those who can boast of the heritage and glory of banking experience cannot claim attachment with any banking institution as promoters, leading stake-holders, directors or as key executives in the administration and management of any banking institution. Even if some one has any contribution towards promotion of a bank, his identity as a goldsmith or as a descendent of a goldsmith is not expressly known. For example, Nobel Laureate Prof. Dr Muhammad Yunus is the member of a goldsmith's family. His identity as the member of a goldsmith's family has been disclosed in his book, "The Banker to the Poor"; but very few people know that he belongs to the community of goldsmiths. Prof. Dr Yunus has accomplished a giant task by setting up Grameen Bank for the welfare of the landless womenfolk of Bangladesh. This has earned great reputation and honour both for him and for the country. He would have done good if he could have established a bank for the welfare of the community he belongs to. As a student of Economics, Dr Yunus is well aware of the fact that his ancestors were the builders of modern banking. It is therefore assumed that he takes pride in belonging to the community who are known to be forefathers of modern banking. It is well and good that he has established Grameen Bank, a micro-credit institution for the good of the down-trodden landless village population, particularly the poverty-stricken village womenfolk. His "Social Business Project" is also a pragmatic step towards expansion of social service through social business. The goldsmiths community may reasonably hope that Dr Yunus shall do something for them. One such thing may be the establishment of a specialised public limited banking company in the name of "Bangladesh Goldsmiths Bank Ltd" or in any other suitable name befitting the contribution of the goldsmiths towards modern banking.
Dr Yunus is now a world-renowned figure. If he desires he can do a lot for his community. The community of goldsmiths feels proud about Dr. Yunus. This feeling of pride is something different from the feeing of others in Bangladesh. Everybody who has risen to power, position, glory and success should do his best for the welfare of his community. It is not showing any favour to one's own community; rather, it is the repayment of debt to the community. It is one's moral obligation to do good to the community in which he was born and brought up. Late Mr Mahbubul Alam, the sponsor of Swanirvar Bangladesh, used the title "Chashi" after his name to glorify the honour and dignity of the farming people of Bangladesh. Dr Atiar Rahman, the present Governor of Bangladesh Bank, belongs to the peasant community. It would be a great service to the peasantry if banking facilities are made cheap and easily available to them. Like the peasantry, the goldsmiths community will also ever remember him if a bank in their name is established during his term of office.
Although there is no formal banking institution of the goldsmiths, some important functions of modern banking are still performed by them. Many goldsmiths carry on the lending business as their regular trade.
Professional goldsmiths, with sound academic background, should take the lead in establishing a formal banking house. There is great potentiality of a goldsmiths' bank in Bangladesh since the goldsmiths deal in gold and gold items which are equivalent to highly-valued foreign exchanges like dollar and pound.
Although proposed to be named as Goldsmiths' Bank, such a bank shall not restrict its shareholding to goldsmiths only. The shares and debentures of this bank shall be open to all. The services of this bank shall also be rendered to all, irrespective of caste, creed and community. The naming of the bank as "Goldsmiths' Bank" shall carry significance only to the extent that the promoters and entrepreneurs of this bank shall be goldsmiths and the majority, say, seventy per cent, of the shares of this bank may be owned by the goldsmiths.
The goldsmiths have a national forum called "Bangladesh Goldsmiths welfare Association" and the proposed bank may be sponsored by this forum. It will be a novel venture.
(The writer teaches at the International Islamic University Chittagong, Dhaka Campus. He can be reached at
e-mail: arifsadeq@yahoo.com)
History of Banking bears adequate testimony that the goldsmiths are the forefathers of modern banking. The goldsmiths are well-reputed for their professional integrity, honesty, solvency, safety and reliability. These qualities are essential ingredients for a good banking institution. With these vital qualities, along with commendable and standard technical expertise, a banking institution can rise to its highest height of success within a short time. It is sad that in spite of being the predecessors of modern banking, the goldsmiths, now-a-days, are neither in their proper position as pioneers of banking nor being treated appropriately by bankers as beneficiaries. As pioneers of modern banking, their position in the banking arena should have been prominent and conspicuous by their active presence and participation in the promotion and development of banking institutions. The present-day banking establishments are largely promoted by industrial magnets, political personalities and others well-to-do persons who are neither bona fide goldsmiths nor their descendents.
There are hundreds and thousands of bona fide goldsmiths who are engaged in goldsmiths' profession and jewellery business in the country. Among them, a considerable number of goldsmiths and jewellers are financially so sound and established that they can easily promote a banking institution which may be named as "Bangladesh Goldsmiths Bank Ltd" and incorporated under the Banking Companies Act. It may be added here that the goldsmiths are not only traders in gold, gold-ornaments, they are also bankers in their individual capacity, as they carry on the business on deposit collection and lending of money to the needy borrowers side by side with their original business of gold trade.
Almost all the banks, now operating in Bangladesh, both local and foreign, have been established by the entrepreneurship of people who had no banking heritage and tradition. As against that, those who can boast of the heritage and glory of banking experience cannot claim attachment with any banking institution as promoters, leading stake-holders, directors or as key executives in the administration and management of any banking institution. Even if some one has any contribution towards promotion of a bank, his identity as a goldsmith or as a descendent of a goldsmith is not expressly known. For example, Nobel Laureate Prof. Dr Muhammad Yunus is the member of a goldsmith's family. His identity as the member of a goldsmith's family has been disclosed in his book, "The Banker to the Poor"; but very few people know that he belongs to the community of goldsmiths. Prof. Dr Yunus has accomplished a giant task by setting up Grameen Bank for the welfare of the landless womenfolk of Bangladesh. This has earned great reputation and honour both for him and for the country. He would have done good if he could have established a bank for the welfare of the community he belongs to. As a student of Economics, Dr Yunus is well aware of the fact that his ancestors were the builders of modern banking. It is therefore assumed that he takes pride in belonging to the community who are known to be forefathers of modern banking. It is well and good that he has established Grameen Bank, a micro-credit institution for the good of the down-trodden landless village population, particularly the poverty-stricken village womenfolk. His "Social Business Project" is also a pragmatic step towards expansion of social service through social business. The goldsmiths community may reasonably hope that Dr Yunus shall do something for them. One such thing may be the establishment of a specialised public limited banking company in the name of "Bangladesh Goldsmiths Bank Ltd" or in any other suitable name befitting the contribution of the goldsmiths towards modern banking.
Dr Yunus is now a world-renowned figure. If he desires he can do a lot for his community. The community of goldsmiths feels proud about Dr. Yunus. This feeling of pride is something different from the feeing of others in Bangladesh. Everybody who has risen to power, position, glory and success should do his best for the welfare of his community. It is not showing any favour to one's own community; rather, it is the repayment of debt to the community. It is one's moral obligation to do good to the community in which he was born and brought up. Late Mr Mahbubul Alam, the sponsor of Swanirvar Bangladesh, used the title "Chashi" after his name to glorify the honour and dignity of the farming people of Bangladesh. Dr Atiar Rahman, the present Governor of Bangladesh Bank, belongs to the peasant community. It would be a great service to the peasantry if banking facilities are made cheap and easily available to them. Like the peasantry, the goldsmiths community will also ever remember him if a bank in their name is established during his term of office.
Although there is no formal banking institution of the goldsmiths, some important functions of modern banking are still performed by them. Many goldsmiths carry on the lending business as their regular trade.
Professional goldsmiths, with sound academic background, should take the lead in establishing a formal banking house. There is great potentiality of a goldsmiths' bank in Bangladesh since the goldsmiths deal in gold and gold items which are equivalent to highly-valued foreign exchanges like dollar and pound.
Although proposed to be named as Goldsmiths' Bank, such a bank shall not restrict its shareholding to goldsmiths only. The shares and debentures of this bank shall be open to all. The services of this bank shall also be rendered to all, irrespective of caste, creed and community. The naming of the bank as "Goldsmiths' Bank" shall carry significance only to the extent that the promoters and entrepreneurs of this bank shall be goldsmiths and the majority, say, seventy per cent, of the shares of this bank may be owned by the goldsmiths.
The goldsmiths have a national forum called "Bangladesh Goldsmiths welfare Association" and the proposed bank may be sponsored by this forum. It will be a novel venture.
(The writer teaches at the International Islamic University Chittagong, Dhaka Campus. He can be reached at
e-mail: arifsadeq@yahoo.com)