BAB urges finance adviser to consider stakeholders’ demands

At a time when the interim government has initiated various reforms to salvage the ailing banking sector, the Bangladesh Association of Banks (BAB) yesterday urged the finance adviser to consider stakeholders’ suggestions before formulating policies.
Members of the BAB, a platform representing owners of private commercial banks in Bangladesh, led by its chairman Abdul Hai Sarker, met Finance Adviser Salehuddin Ahmed at his office in Bangladesh Secretariat and placed various proposals.
After the meeting, the finance adviser told journalists that they mostly discussed existing problems and reform initiatives in the banking sector.
The members of the BAB wanted their recommendations to be reflected in the government’s ongoing reform measures, Ahmed said.
“I told them that their suggestions would be considered. However, they were also asked to ensure good governance, transparency and accountability in the sector,” he said.
He further asked them to disburse loans cautiously and inclusively so that small borrowers could get their desired loans.
After taking office following the political changeover on August 5, the interim government has taken various remedial steps for the crisis-hit banking sector.
This included dissolving and reconstituting the boards of directors of 11 banks.
Since many banks are contending with a liquidity crisis, the central bank also allowed them to secure liquidity support from the inter-bank money market.
The interim government also sought budgetary support from different development partners including International Monetary Fund (IMF) and World Bank.
While speaking to journalists yesterday, Sarker said the government’s policymaking process usually does not involve stakeholders.
He said the participation of stakeholders is crucial in implementing government policies.
He added that only a handful of directors of banks were involved in irregularities, not all.
“Good directors should not be blamed for the misdeeds committed by the bad ones. It would be incorrect to generalise,” he further said.
He also said the government could seek funds from development partners like the World Bank, IMF and Asian Development Bank to support cash-strapped banks.