Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday called for urgent legal reforms to shield the country’s banking system from political interference, stressing that institutional independence is essential to prevent future financial irregularities.
Speaking at a roundtable discussion titled ‘Impact of LDC Graduation on Banking Sector’ in Banani, Dr. Mansur highlighted a proposal to amend the Bangladesh Bank Order, submitted to the government four months ago, which he said is critical for modernizing the central bank’s regulatory framework.
“It is regrettable that the amendment has not yet seen the light of day. To prevent political meddling in the future, this approval is essential. We need a modern central banking system backed by law,” he said.
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Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition to manage economic challenges, the governor rejected such calls, citing Bangladesh’s strong performance across development indicators.
“We should not compare Bangladesh with countries like Somalia, South Sudan, or Afghanistan. Every development index, including GDP, shows we are far ahead. Staying in the LDC group is not a matter of honor for us anymore. The nation’s goal should be to join the ranks of developing countries like Malaysia or India to gain global respect. We cannot sacrifice long-term gains for minor, short-term benefits.”
The governor also criticised the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for past inaction during episodes of money laundering and the controversial ‘6–9 percent’ interest rate cap.
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“Business organisations have behaved like puppets in the past. They cheered for the 6–9 percent interest rate and remained silent when money was being siphoned out of the country. Democracy can never be strengthened if such behavior continues,” Dr Mansur said.
During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, expressed concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have already resulted in 1.2 million job losses, with another 1.2 million potentially at risk in the next six months.
Dr Mansur acknowledged that interest rates are high but attributed the situation to $20 billion being siphoned out of the country, which contributed to a rise in non-performing loans (NPLs).
He said once governance improves and inflation is brought under control, interest rates are expected to ease.
The International Chamber of Commerce, Bangladesh (ICCB) organised the event, with its president Mahbubur Rahman moderating and economic analysts, policymakers and business leaders in attendance.