United News of Bangladesh

A citizens’ platform has expressed concern over the recent appointment of a new governor of Bangladesh Bank, questioning both the selection process and the background of the appointee. In a statement sent on Monday signed by Fahim Mashrur, co-convener of the Citizens’ Coalition, the platform said that while leadership changes in state institutions are expected following the formation of a new government after the 13th national election on February 12, the manner in which the central bank’s new chief was appointed has raised serious concerns among sections of civil society. The coalition described the banking sector as one of the worst-affected areas during the past decade and a half, alleging that political patronage enabled a group of influential business figures to siphon off public savings abroad, said a press release. It claimed that the volume of non-performing loans has now exceeded Tk 6 lakh crore, with the default rate standing at 36.3 percent. The coalition said this is the first time a businessperson has been appointed to head the central bank and argued that similar examples are rare in countries with comparable economies. The statement noted that the newly appointed governor had previously held important positions in influential business bodies related to the readymade garment industry, real estate, travel trade and the Dhaka Chamber, representing business interests. In this context, it warned of potential conflicts of interest, as central bank policies directly affect various business sectors. The coalition also referred to reports that the new governor had rescheduled loans amounting to over Tk 80 crore for his own business enterprise under special consideration. While acknowledging that such rescheduling may be legally permissible, it questioned whether assuming the top position at the central bank while carrying substantial loan liabilities meets acceptable ethical standards. Furthermore, the platform cited media reports suggesting that the governor had recently served as an important member of the ruling party’s election management committee. Given that a significant proportion of members of parliament and cabinet members come from business backgrounds and that many lawmakers are reportedly loan defaulters, the coalition questioned whether a politically affiliated appointee could exercise independent and professional leadership over the banking sector. The Citizens’ Coalition said it fears that appointing a businessperson with political links to head Bangladesh Bank could risk turning the central bank into an instrument of vested interests rather than safeguarding national economic priorities. Nahid demands removal of new BB governor It also argued that such an appointment appears inconsistent with the ruling party’s election pledges on ensuring good governance, discipline, oversight and transparency in the banking and financial sectors. Citizens’ Coalition urged the government to reconsider the appointment, taking into account economic risks and possible conflicts of interest. It called for the formation of an expert search committee and a parliamentary hearing process before appointing a new governor of Bangladesh Bank.