Banks are vehicles for financial oligarchy: CPD

Banks are vehicles for financial oligarchy: CPD

The financial oligarchy under crony capitalism in the country is using banks as vehicles to fulfil their goals, said Fahmida Khatun, executive director of Centre for Policy Dialogue (CPD).

She made the remark on a dialogue titled "What Lies Ahead for the Banking Sector in Bangladesh?", organised by the CPD at La Vita Hall, Lakeshore Hotel today.

Presenting a paper, Khatun said that the total volume of non-performing loans (NPL) has more than tripled in the last ten years, from Tk 42,725 crore in the fourth quarter of fiscal year 2011-12 to Tk 1,45,633 crore in Q2 of FY24.

However, the actual amount of NPL will be much higher if loans in specially mentioned accounts, with court injunctions, and rescheduled loans are included.

She also said that people are now withdrawing money from banks as massive irregularities in the banking sector have eroded their trust.

The CPD suggested the autonomy of the central bank should be upheld in line with the Bangladesh Bank Amendment Bill 2003.