Speakers at a seminar highlighted the need for legal reforms related to the banking sector, while insisting that political interference should be eradicated to run this vital sector smoothly.
They said this while speaking at a seminar titled ‘Reforming the banking sector and what should be reformed’, held at the Jatiya Press Club on Monday. A group of bankers under the banner Conscious Bankers’ Society organised the seminar.
Professor Abu Ahmed of DU was the chief guest at the event. He said that the banking sector should be kept free from the influence of individuals and various business groups. A panel of competent and honest people should be formed by Bangladesh Bank (BB) for the appointment of directors of various banks.
Weighing in on the situation that has arisen around a dozen Islamic banks that the S Alam Group had taken control of before they ended up in the scanner of law enforcers following the political changeover on August 5th, Prof. Ahmed emphasized that these banks have to be returned to their original investors, and side by side an expert panel on Shariah-based banking should be appointed for these banks.
"The customers’ trust in Islamic banks would be restrained when the ownership of the banks are returned to those who were the founders of those banks,” he pointed out.
Prof Ahmed said the banking commission should be constituted with honest and competent people. The Banking Commission shall determine the actual status of defaulted loans through an independent auditor.
“Crooked policymakers and money launderers responsible for defaulting loans should be brought to justice. Banks must be freed from family and government control,” he said.
A dedicated bench of the High Court should be constituted for expeditious disposal of cases related to banking irregularities, he also pointed out.
Professor Dr. Mizanur Rahman of DU gave a presentation at the seminar. Former senior secretary Yunusur Rahman, former secretary Dr. M. Aslam Alam, former executive director of Bangladesh Bank Abdul Awal Sarkar, colonel (retd) engineer M. Alauddin PSC, professor of the law department of DU Naqib Nasrullah, Former FBCCI Vice President Abul Kasem Haider, distinguished banker Dr. M Kamal Uddin Jasim, among others, spoke at the event.
The speakers emphasized that a director of a bank cannot take a loan from his own bank and at the same time cannot be a director of another bank.
In appointing a director, his past work record and experience should be given importance. The board of directors should have one-third independent directors, they asserted.