B Mirror Report: Proposed revisions to the Bangladesh Bank Order of 1972 have been placed on hold by the finance ministry, which authorities claimed is politically sensitive and that a future elected administration should make the final decision.
Finance Adviser Dr. Salehuddin Ahmed stressed in a letter to Bangladesh Bank Governor Dr. Ahsan H. Mansur on Thursday that updating a fundamental statute governing the nation’s central bank necessitates prudence, thorough examination, and stakeholder and expert participation. The letter stated that the elected administration would examine changes to the Bangladesh Bank Order if needed.
Dr. Mansur started the proposed adjustments as part of larger initiatives to address the banking industry’s long-standing anomalies, governance shortcomings, and inadequate oversight. Bangladesh Bank has consolidated weaker institutions and reorganized the boards of a number of private banks in recent months.
Draft amendments aimed to strengthen the autonomy and accountability of Bangladesh Bank. Key proposals included reducing government representation on the board while increasing the number of independent experts, creating a search committee for appointing the governor and deputy governors, implementing new internal staff policies, and establishing a unified supervisory framework to curb corruption.
The plan also includes formalizing accountability to a legislative committee and increasing the central bank’s paid-up capital to Tk 1 billion ($9 million).
In October, the document was forwarded to the finance ministry for approval; however, the process was halted by bureaucratic delays. The reform attempt was essentially placed on hold until a politically required government took office because in spite of multiple sessions, little progress was made.
