Bangladesh’s private bank owners have called on the interim government to refrain from imposing unlawful directives that could foster the rise of new oligarchs, as seen in the past.

Speaking after a meeting with Finance Adviser Dr. Salehuddin Ahmed on Thursday, Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks, highlighted concerns over government intervention in the banking sector.

Sarker specifically cited the case of S Alam, a prominent businessman whose success was reportedly backed by the previous government. “The past government patronized the creation of oligarchs like S Alam. The banks were directed to provide him with funds, allowing him unchecked influence,” Sarker told reporters at the Bangladesh Secretariat.

He expressed hope that the current government would not engage in similar practices, stating, “We hope the present government would not interfere in banks to create any more S Alam-like oligarchs.”

During the discussion with the Finance Adviser, bank owners requested a more favorable lending policy to lower the cost of loans and ensure the recovery of funds. Sarker voiced concerns over widespread loan defaults, remarking, “Many people have left by looting our money. Most of the borrowers are not giving money back.”

He also revealed that bank owners had proposed seeking financial assistance from international institutions such as the World Bank and the International Monetary Fund to support struggling banks. Specifically, they suggested a rescue package for nine problem banks facing severe liquidity and loan recovery issues.

Sarker further demanded stricter measures against loan defaulters who have fled the country, insisting they should not be allowed to pursue legal cases through representatives while abroad. “They should attend the courts physically,” he said.

In response, Finance Adviser Dr. Salehuddin Ahmed acknowledged the banking sector’s challenges, including loan defaults and liquidity shortages. He urged bank owners to engage with the central bank and emphasized the importance of conducting proper loan assessments.

“I have requested them to ensure that bankers give loans through proper scrutiny and no deviation occurs like in the past,” Ahmed said, while also encouraging banks to increase lending to small and medium enterprises (SMEs). The bank owners, in turn, stressed that their views should be considered during any reform processes.