Bangladesh Bank has issued a firm warning that it stands fully prepared to intervene directly in any bank that fails to operate in a disciplined, transparent and accountable manner. Central bank Governor Dr Ahsan H Mansur made it clear that mismanagement and irregularities that undermine depositors’ interests will no longer be tolerated under any circumstances.
The governor delivered this strong message on Thursday while addressing a seminar on the banking sector organised by the Economic Reporters Forum (ERF). Speaking as the chief guest, he said the central bank is now ready to adopt a far more proactive and uncompromising stance to restore order and credibility in the country’s banking system.
Dr Mansur announced that Bangladesh Bank will directly investigate loans exceeding Tk 200 million. Any evidence of irregularities, negligence, weak governance or conflicts of interest in the approval and management of such large loans will result in punitive action against those responsible. Emphasising collective responsibility, he stated that the downfall of a bank cannot be attributed solely to its owners. Bank officials, decision-makers and implementers, he said, are equally accountable at every stage of the lending and management process. “Accountability will be ensured from top to bottom,” the governor asserted.
Addressing concerns surrounding recently merged banks, Dr Mansur reassured customers that depositor protection remains a top priority for the central bank. He confirmed that depositors of the five recently consolidated banks will initially be guaranteed protection of up to Tk 200,000. This measure, he explained, is intended to safeguard ordinary customers and restore public confidence in the banking system at a critical moment.
Beyond the banking sector, the governor expressed cautious optimism about the broader economic outlook. He noted that the national economy is currently in a relatively stable position, supported by improvements in external transactions, steady remittance inflows and consistent growth in export earnings. If these trends continue, Bangladesh’s foreign exchange reserves could reach between USD 34 billion and USD 35 billion by the end of the year, even without additional disbursements from the International Monetary Fund (IMF).
Dr Mansur stressed that meaningful reform of the banking sector is indispensable to strengthening the foundations of the economy. Weak banks, he said, must be brought back onto a sound footing, and Bangladesh Bank will not hesitate to take tough and, if necessary, unpopular decisions to achieve this goal. Stability, discipline and depositor protection, he added, will guide all future regulatory actions.
The seminar was attended by bankers, economists and financial sector analysts, many of whom described the governor’s remarks as a timely and decisive signal. They viewed the central bank’s renewed resolve as a crucial step towards restoring discipline, accountability and public trust in Bangladesh’s banking sector.