Numerous crises and difficulties are currently plaguing the nation’s banking industry. Even though the banking industry’s reform process has started to address these issues, business owners and senior executives believe that consultation is crucial before implementing any changes.

Those working in the field believe that any action that is taken without considering stakeholder opinions could lead to implementation issues.

The chairman of Shahjalal Islami Bank, a private bank, AK Azad, has suggested strengthening Bangladesh Bank even more. He asserts that discipline in the banking industry cannot be restored if the central bank is unable to adequately regulate government banks.
In order to reform the banking industry, he added, a special banking commission could be established. However, the commission’s efficacy will be questioned if it is not granted the appropriate authority.
The banking industry’s regulatory body, Bangladesh Bank, has already started to reform the financial industry. However, the opinions of the concerned parties must be taken into consideration for these steps to be implemented successfully.

Bangladesh Association of Banks (BAB) Chairman Abdul Hai Sarkar told the media that the Ministry of Finance and Bangladesh Bank have taken some steps to reform the banking sector. However, he believes that stakeholders should be consulted before formulating any steps or policies. He said, “We are stakeholders, at the end of the day, we have to implement these policies.”

Islami Bank Chairman Obaid Ullah Al Masud acknowledged the importance of the central bank’s strong role. According to him, if the central bank’s supervision and audit are conducted properly, it is possible to restore discipline in the banking sector.

In addition, he emphasized the need to take strict action against concealing information about defaulted loans or publishing false financial statements. Bangladesh Bank will have to take steps in two phases to deal with the liquidity crisis—short-term solutions and long-term reforms.

BRAC Bank CEO Selim Reza Farhad Hossain said that Bangladesh Bank has the responsibility to build a sustainable and strong foundation for the banking and financial sector in Bangladesh. He believes that although Bangladesh Bank has set clear policies, in the past many banks have ignored these policies due to political influence, which has created chaos in the financial sector. However, currently the banking sector is on the path of improvement.

Overall, it is considered necessary to take the opinions and suggestions of all parties concerned in the reform of the banking sector and strengthen the role of Bangladesh Bank. By taking these steps, it will be possible to restore discipline in the banking sector, which will play an important role in the economic development of the country.

However, all parties have praised the recent activities of Bangladesh Bank and expressed optimism for its success.