The long-standing opacity, irregularities and looting in Bangladesh’s banking sector have begun to come to light. During the Awami League government, there was widespread corruption in the banking sector, where bank money was divided, money laundering and false information was concealed in the name of loans. However, the situation has started to change after the student uprising last August, and some discipline has returned to the banking sector after the interim government took office.

In the last six months, some reforms have been made in the banking sector under the leadership of the interim government. The boards of 11 banks, including Islami Bank, owned by the S Alam Group, have been restructured. However, protests against some high-ranking officials of Islami Bank are still ongoing. There are serious allegations that action is being delayed against them because S Alam’s people are active.

Since Bangladesh Bank made loan interest rates market-based, interest rates have reached close to 9 percent to 15 percent within a year, which has led to a decline in investment. The value of the dollar has also increased alarmingly, with the value of one dollar at the bank yesterday at 121 taka 91 paisa, which has reached 127 taka in the open market.

In addition, in September last year, defaulted loans in the banking sector increased to 2 lakh 84 thousand 977 crore taka. Meanwhile, Bangladesh Bank has started forensic audits of commercial banks and has taken initiatives to bring back the laundered money. Investigations for money laundering and other financial frauds are also underway against S Alam, Beximco, Summit, Bashundhara, Gemcon, Orion, Nabil, NASA, Sikder, and Aramit Group.

Bangladesh Bank has taken initiatives to increase its capacity with the help of the World Bank and the IMF. To restore good governance in the banking sector, the head of the BFIU has been arrested on corruption charges and about 10 thousand suspicious accounts have been frozen.

In this context, the professor of Chittagong University. Mainul Islam said that the situation of the banks owned by Islami Bank and S Alam Group needs to be investigated more deeply, so that it is known how these banks will be reformed and how the responsibilities will be divided.

Bangladesh Bank spokesperson Arif Hossain Khan said that there have been many irregularities in the banking sector and some banks are in weak condition. The situation of those banks will be reviewed and necessary measures will be taken, but it will take time.