Bangladesh’s banking sector faces significant challenges due to a lack of transparency and accountability, undermining its ability to support the financial sector. Dr. Fahmida Khatun of the Centre for Policy Dialogue highlighted that depositor confidence is waning, and the central bank often implements externally imposed decisions. Governance issues and high non-performing loans further strain the sector. Recent forced mergers of weak banks with stronger ones may not be sustainable without proper preparation, she warned. Dr. Khatun advocates for excluding those responsible for financial mismanagement from bank boards, conducting thorough audits before mergers, and ensuring access to information for journalists. She recommends institutional and regulatory reforms to stabilize the macroeconomic environment.
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