Finance Minister AHM Mustafa Kamal has suggested a number of reforms to bring back discipline in the banking sector.
The proposals put forward in his budget speech include increasing capital (authorised and paid up) of banks gradually, amending Bank Company Act so that bank management, all components of revenue management (VAT, Customs and Income Tax) can function as usual without facing any conflict with other laws. He also proposed Bank Company Act to be amended so that amalgamation, merger and absorption of banks can be legally processed.
Stern measures are also proposed to be taken against the willful defaulters of bank loans. The government has been working to bring down the interest rates of bank loans to single digits.
Necessary amendments will be brought to the Bank Company Act to modernise the functions of holding companies and subsidiary companies.
