Bangladesh Bank’s governor highlighted a growing confidence in the banking sector as deposits increase and money outside banks decreases by Tk 45,000 crore. At a roundtable organized by The Daily Star, the governor reassured that customers can now trust the banking system, following reforms aimed at restoring discipline after years of irregularities and toxic loans under weak governance.
The central bank has restructured the boards of 11 banks to address liquidity shortages and rebuild trust. The discussion revealed that cash outside banks has dropped slightly, though it remains high at Tk 290,000 crore. Banking leaders stressed the need for further reforms, such as revisiting the Bank Companies Act and enhancing digitalization across the financial sector to tackle challenges like the informal hundi system and rent-seeking behavior. The governor cautioned that export declines could affect the economy, underscoring the need for support in export-oriented sectors, but dismissed direct incentives as the solution.
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