Economy
Tk92,261 Crore Embezzled in 24 Major Banking Scams Between 2008-2023, Says CPD
Between 2008 and 2023, a staggering Tk92,261 crore, equivalent to 12% of the national budget for FY24, was embezzled through 24 major banking scams, the Centre for Policy Dialogue (CPD) revealed at an event on 12 August.
The event, titled “Bringing Discipline in the Banking Sector: What Should be Done Immediately,” highlighted the erosion of public trust in the banking sector due to its continuous decline and the inadequate measures taken by policymakers from the previous government.
Fahmida Khatun, executive director of the CPD, delivered the keynote address, outlining several critical recommendations for improving the sector.
The CPD emphasized the need to strengthen commercial banks, uphold the independence of Bangladesh Bank, create a conducive legal and judicial environment, and ensure the integrity and timely availability of data.
The organization pointed out that creditworthiness is often assessed based on political connections rather than financial viability. It also highlighted the low recovery rates for rescheduled loans, with only 33% of first-time rescheduled loans and 30% of third-time rescheduled loans being recovered.
The CPD called for an end to the repeated rescheduling and write-offs of non-performing loans (NPLs). It also identified several banks as “clinically dead” and recommended that they be allowed to close down.
Addressing the issue of embezzlement, the CPD urged for thorough investigations and the prosecution of all individuals involved in fraudulent activities.
The advocacy group also raised concerns about a single corporation gaining control of over seven private commercial banks, stating that this should not be permitted.
To expedite the resolution of loan default cases and reduce the backlog, the CPD recommended increasing the number of judges dealing with cases under the Financial Loan Court Act 2003 and the Bankruptcy Act 1997.
The briefing was attended by CPD Distinguished Fellow Prof. Mustafizur Rahman, Research Director Khondaker Golam Moazzem, Senior Research Fellow Towfiqul Islam Khan, among others.
Expatriate Bangladeshis sent approximately US$ 2.11 billion in remittances during the first 28 days of September in the fiscal year 2024-25, according to data released by Bangladesh Bank on 29 September.
Of this total, state-owned and specialised banks handled $679.10 million, while private banks received $1.43 billion in remittances.
Chief Adviser to Bangladesh’s interim government, Professor Muhammad Yunus, has vowed to expedite reforms and hold elections swiftly. Yunus, who recently assumed the role after the collapse of Prime Minister Sheikh Hasina’s 15-year administration, expressed his commitment during an interview with Tokyo-based news outlet NHK WORLD in New York on Sunday. He was attending the United Nations General Assembly at the time.
Following mass student-led protests that ended Hasina’s long-standing rule in August, Yunus stepped in as the leader of the caretaker government. Known for founding Grameen Bank, an institution providing microloans to the underprivileged, Yunus, along with the bank, earned the Nobel Peace Prize in 2006 for his efforts in poverty alleviation.
During the interview, Yunus emphasized that the interim government’s primary mission is to implement reforms promptly and ensure elections are held as soon as the groundwork is complete. He underscored the importance of success, stating, “Failure is not something that we can accept.”
Addressing the pivotal role of students in the ousting of the Hasina administration, Yunus acknowledged the sacrifices made by young people, referring to their involvement as part of a “revolution.” He highlighted his intention to engage the younger generation in shaping policy.
Furthermore, Yunus called for continued support from Japan, Bangladesh’s largest donor, during this crucial transition period. He stressed that Japan’s assistance is vital to stabilizing Bangladesh’s economy and fostering a democratic foundation in the nation.
Syeda Rizwana Hasan, the Adviser for Environment, Forests, and Climate Change, announced today that steps will be taken to restrict the use of polythene shopping bags to safeguard future generations.
Starting from October 1, polythene bags will be banned in shopping malls, followed by a ban in kitchen markets from November 1.
“Everyone must take responsibility and stop using polythene voluntarily. Action against polythene producers will begin from November 1,” Rizwana Hasan stated during a seminar.
The Department of Environment (DoE) organized the seminar to raise public awareness about alternatives to banned polythene bags.
Rizwana Hasan highlighted that the restriction on polythene will be executed in phases according to legal provisions, and discussions with shopping centers and store owners are ongoing to ensure a smooth transition.
She also announced plans to make the government secretariat a plastic-free zone by December.
Other speakers at the seminar included Environment Secretary Dr. Farhina Ahmed, DoE Director General Dr. Abdul Hamid, Director Rajinara Begum, President of the Shop Owners Association Muhammad Helal Uddin, and Md. Arifur Rahman Bhuiyan, Assistant Professor of Environmental Science at BUP. They discussed the harmful effects of polythene and the need for alternative products.
Earlier, Rizwana Hasan inaugurated a fair showcasing eco-friendly alternatives to polythene bags and visited 24 stalls. The fair featured products from government and private entrepreneurs, including reusable bags, jute bags, paper bags, and items made from bamboo and cane.
