Bankers and financial experts have issued a strong call for the protection of small shareholders amid the mandatory merger of five Islamic banks, following a central bank declaration that nullified their Net Asset Value (NAV) due to past "plunders."
Speaking at a graduation ceremony organized by the Bangladesh Institute of Bank Management (BIBM), experts strongly criticized the central bank's failure to properly regulate the commercial sector, which has led to system vulnerabilities that directly impacted small investors and depositors.
Professor Dr. MA Baqui Khalily questioned the regulatory oversight that allowed a single company to take over five Islamic banks and demanded accountability for the small shareholders’ investment losses. Pubali Bank MD, Mohammad Ali, reinforced the need for bankers to resist political pressures in loan approvals, confirming that nearly all Managing Directors have faced such external and internal pressure.
The consensus from the financial community is that "absolute autonomy" for the Bangladesh Bank (BB) is essential to secure financial governance and foster growth.
In response, BB Deputy Governor Nurun Nahar stated that banks facing trouble had failed to comply with central bank guidelines, assuring the audience that a new, single-window risk-based supervision is now in place to enhance governance.
Comment
