The Centre for Policy Dialogue on Saturday said that Tk 92,261 crore has been appropriated in the past 15 years from the baking sector, facing disarray because of a high number of non-performing loans.
It also warned that the coming general election would not help create an environment for reforms in the financial sector, while releasing the report titled ‘State of the Bangladesh economy in FY2023-24’ at its office in the capital.
The local think-tank CPD calculated the embezzled fund by compiling 24 incidents between 2008 and 2023.
The compilation was based on published reports in the leading newspapers, said CPD executive director Fahmida Khatun.
It also calculated that the misappropriated fund was equivalent to 12 per cent of the current national budget and 2 per cent of the country’s gross domestic product.
The embezzlement and other plaguing issues of the banking sector have been interpreted in the section titled ‘Hope for a sound banking sector fading away fast’ of the published report.
Answering a question how much of the embezzled fund has been smuggled out of the country, Fahmida said that they have no specific data in this regard.
The Bangladesh Bank has not made any information on the issue public, she said, adding that it was assumed that a part of the fund was smuggled out.
Terming the growing non-performing loans, in short NPL, a major threat for the economy, the CPD warned that the banking sector is in disarray.
Besides, it has identified high inflation, shortage of dollar, exchange rate policy and labour rights as critical for the macro-economy sustaining pressures since 2022.
The government has borrowed from the International Monetary Fund to overcome the economic headwinds.
The CPD has also expressed doubt that stability in the macro-economy is possible without broad-based reforms in a dozen entities including Bangladesh Bank, finance ministry, commerce ministry and labour ministry.
Answering another question on reforms in the banking sector, the CPD executive director said it would be very difficult to establish good governance in the finical sector since key organistions are controlled by a vested quarter.
The banking sector is in the grip of crony capitalists abusing the sector for becoming oligarchs, added its executive director.
CPD distinguished fellow Mustafizur Rahman, research director Dr Khondaker Golam Moazzem and senior research Towfiqul Islam Khan were also present at the ceremony and took part in the discussion.
Golam Moazzem said the coming general election would not be able to ensure an environment imperative for holding the much-needed reforms.
Mustafizur Rahman said that the growing inequality would be widening in case of failure to make reforms.
Both income and consumption inequalities in Bangladesh have widened further over the past six years. Income inequality in the country stood at Gini coefficient of 0.4999 in 2022, according to the Household Income and Expenditure Survey 2022, released by the Bangladesh Bureau of Statistics April 2023.
The consumption inequality is also increasing as it rose to 0.334 in 2022 from 0.324 in 2016 and 0.321 in 2010.
