As Bangladesh’s interim government implements reforms to address the challenges plaguing the banking sector, the Bangladesh Association of Banks (BAB) has called on the government to consider stakeholders’ input before finalizing new policies.

Members of the BAB, led by Chairman Abdul Hai Sarker, met with Finance Adviser Salehuddin Ahmed at the Bangladesh Secretariat to present a series of proposals to improve the sector.

Following the meeting, Finance Adviser Ahmed informed journalists that the discussion largely centred on the current issues within the banking industry and the ongoing reform efforts. The BAB emphasized the need for their recommendations to be included in the government’s reform measures. Ahmed assured them that their suggestions would be considered but urged the banks to prioritize good governance, transparency, and accountability in their operations.

“I told them that their suggestions would be considered. However, they were also asked to ensure good governance, transparency, and accountability in the sector,” said Ahmed. He also stressed the importance of careful and inclusive lending practices to ensure small borrowers can access financing.

Since assuming office after the political transition on August 5, the interim government has initiated various measures to stabilize the crisis-hit banking sector. Among these reforms are the dissolution and reconstitution of the boards of directors at 11 banks, a move aimed at improving governance. The central bank has also allowed struggling banks to obtain liquidity support from the inter-bank money market to ease their liquidity constraints.

The government has also sought financial assistance from international development partners, including the International Monetary Fund (IMF) and the World Bank, to provide budgetary support during this challenging period for the banking sector.

Speaking to the press, BAB Chairman Abdul Hai Sarker criticized the government’s usual policymaking process for excluding key stakeholders. He emphasized that involving stakeholders is essential for successfully implementing policies in the banking sector. Sarker also highlighted that while irregularities had occurred, only a few directors were involved, and it was not a widespread issue across all banks.