Banking sector at risk if former shareholders return without punishment: Experts
Those who laundered money from merged banks must be brought under punishment, speakers say
The opportunity to regain ownership for former shareholders of merged weak banks will put the banking sector at further risk, according to experts.
"Those who laundered money from merged banks must be brought under punishment," said Toufic Ahmad Choudhury, former director general of the Bangladesh Institute of Bank Management (BIBM), while speaking at a roundtable today (25 April).
Yet, instead of punishing them, an opportunity has been created for them to return as owners of these banks, he said, adding, "Why was this opportunity given? Providing such an opportunity will create more risk in the banking sector."
SHUJAN Secretary Badiul Alam Majumdar, Head of Online at Prothom Alo Shawkat Hossain, politician Sarwar Tushar, Professor at SOAS University of London Mushtaq Khan, North South University Professor AKM Waresul Karim, President of CFA Society Asif Khan, and Bangladesh Thai Chamber of Commerce and Industry President Shams Mahmud were present at the discussion titled "Amended 'Bank Resolution Act, 2026': Banking Sector Discipline at Risk Again?", organised by "Voice for Reform" this morning at the BDBL building in the capital's Kawran Bazar.
Professor AKM Waresul Karim said, "What has been provided in Section 18A of the Bank Resolution Act, 2026 has frustrated the entire purpose. There is no provision for regaining shares for those who lost it ten years ago."
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Professor Mushtaq Khan said, "To restore trust in the banking sector, suddenly closing any bank can be risky. Because banks are interconnected; if one bank closes, its impact can spread to other healthy banks."
He warned that if bank looters are not punished and a risk of a second 'bank run' is created, it will be difficult to stop, which would make the entire sector unstable.
