Central bank supervision in Bangladesh is weakening primarily due to inadequate policy responses to banking irregularities. Employees of Bangladesh Bank criticize the dependency on junior staff to enforce banking regulations, leading to a discouraging atmosphere for effective oversight. Despite an increase in bank numbers, staffing levels at the central bank have not kept pace, limiting their ability to reduce risks and provide adequate support. Recent attempts to address these issues in meetings have yielded no tangible solutions, as assurances from council leaders have not resulted in improvements. Moreover, while the number of banks has risen, there has been no corresponding increase in central bank staffing, fueling dissatisfaction. Criticism has intensified following recent reports highlighting weakened oversight measures, prompting Deputy Governors to intervene directly, albeit with minimal impact on operational efficiency.
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