There is no precedent worldwide for establishing a bank exclusively for government employees. Yet, such a proposal is now under discussion in Bangladesh. The proposed bank has been provisionally named the “Government Employees Bank.” The National Pay Commission has described government employees as a “salaried, sustainable class” and is reportedly exploring the idea of creating this bank for them.
The Commission, formed on 27 July under the leadership of Zakir Ahmed Khan—Chairman of the Palli Karma-Sahayak Foundation (PKSF) and former Finance Secretary—was tasked with submitting a report within six months. While the current Commission is showing interest in the bank, it is not the first to consider this; the Farashuddin Commission had also made similar recommendations in the past.
Speaking to Prothom Alo, Zakir Ahmed Khan stated, “Discussions are ongoing regarding a bank for government employees. The recommendation may or may not appear in the Commission’s report.”
Some experts, however, have expressed surprise at the idea, noting that no such banks exist globally. They suggest that rather than creating a new institution, the government could focus on improving the operations of existing banks.
The earlier 2014 recommendation had proposed using 20–25 kathas of government land near Daily Bangla Mor to establish a bank called “Somriddhir Sopan Bank” with a paid-up capital of BDT 4 billion.
Although the Commission’s mandate is to review salaries and benefits for employees of government, semi-government, autonomous organisations, state-owned banks and financial institutions, government universities, and state-owned industrial enterprises, discussion about a dedicated bank has emerged.
Some members of the Commission argue that since separate banks already exist for the police, armed forces, Border Guard Bangladesh, and Ansar-VDP, a bank for the 2 million government employees could also be feasible. Currently, government salaries are paid via Electronic Fund Transfer (EFT), and transfers due to relocations often cause delays. A dedicated bank would prevent such issues. It would also provide low-interest loans for children’s education, weddings, and housing, eliminating the current hassle of taking loans from multiple banks.
Some Commission members have even suggested converting an existing weak bank into a Government Employees Bank.
Previously, under the Awami League government, four specialised banks were licensed to cater to specific groups: Ansar-VDP Development Bank (1996), Army Welfare Trust (1999, licensed as Trust Bank PLC), Community Bank (2019, under Bangladesh Police Welfare Trust), and Sinha Bank (2016, for Border Guard Bangladesh).