Economist Dr Atiur Rahman said that corporate good governance should be a part of life, not the expectation, which will be a source of value creation for any of the entities in the private and the public sectors. He said not only in the financial sector, but corporate good governance is also essential for all kinds of enterprises to extend the industrial revolution. Former Bangladesh Bank Governor Dr. Atiur said this at a seminar in Kolkata organised jointly by the Insurance Institute of India and Kolkata, Insurance Institute on Tuesday (13 June 2023). Also Read: ICCB calls for good governance to ensure international compliance Presided by Basant Kumar Naik, Principal of the Institute of Insurance in Kolkata the seminar was attended by Babu Paul, General Manager, National Insurance; Miss Y. Lama, an insurance expert; Professor Konika Chatterjee, Department of Commerce, Calcutta University; and faculties, students, and experts from financial sectors. “Customer trust is the foundation of good governance of any organization. They want delivery and not empty promises,” Dr Atiur said. Also Read: Lawyers can play a big role to ensure good governance: President Again, if they don’t get the promised services, they must be provided with a customer interest protection mechanism to redress their grievances, he pointed out. The long-term sustainability of the organisation depends largely on corporate good governance, which thrives on the execution of well-set-out rules and procedures of the board with enough competent independent members, he said. Also Read: Proposed amendments to banking act don’t go far enough in quest for good governance: Experts Dr. Atiur said that knowledge management and human resource management are pivotal to good governance. And for up-to-the-mark knowledge management- there is no alternative to ensuring exchanges between national, regional, and international peers. He urged that such discourses and exchanges must be facilitated so that governance practices can be revisited and augmented on a regular basis.    

Economists, during a discussion today, said the country’s banking sector is under threat due to lack of trust and good governance in banks. Certain groups are influencing Bangladesh Bank’s regulatory decision-making, which is alarming for the economy, the economists added. They made the observations at a discussion on ‘Managing the Economic Crisis’, organised by the Centre for Policy Dialogue (CPD), at a Dhaka hotel on Saturday. Minister Abdul Mannan attended the event as chief guest while Professor Dr Rehman Sobhan presided over the function. Former governor of Bangladesh Bank Dr Salahuddin Ahmed; economist Dr Ahsan H. Manur; former Chief Economist of World Bank’s Dhaka Office Dr. Zahid Hossain; Professor Abu Ahmed; Barrister Shamim Haider Patwari, Member of Standing Committee on Ministry of Law, Justice and Parliamentary Affairs; Rupali Haque Chowdhury, Managing Director, Berger Paints; Kamrul Islam, secretary of Bangladesh Garment Workers Solidarity, also spoke at the function. Dr Salehuddin said, “If Bangladesh Bank can handle policy implementation rigorously, including defaulted loan collection, I believe the situation will improve.” “But the central bank has to take the right policy independently, not look at anyone's face, as the current economic situation demands it,” he added. Read more: Stick to global lending sources for long-term, low-interest loan, CPD tells govt Any delayed decision of Bangladesh Bank, and the situation will worsen, he said. Citing an example, he said the total volume of non-performing loans (NPLs) has increased by more than three times in the last 10 years since 2012. The NPLs increased over Tk 1.34 lakh crore in the first quarter of the fiscal year 2023 from Tk 42725 crore in the fourth quarter of FY2012, as per a report of the central bank, he said. He said the economy is standing at a point where it has to have proper reforms or be ready to see its collapse. Executive Director of Policy Research Institute, Dr Ahsan H. Mansur, said deposits in the Brac Bank grew 27 percent in the last month as people are looking for good banks for the safety of their money. “So, trust and good governance can save a bank.” He said that rigorous and exemplary punishment for loan scams is needed to gain people’s trust, appointing an observer is not enough. Dr Zahid said the inflation is not created by external effects, domestic demand and GDP is growing, it does not match with the economy. CPD Executive Director Dr Fahmida Khatun placed a report titled "Managing the Economic Crisis: CPD's Policy Recommendation" at the event. "Actual NPLs will be much higher if loans in special mention accounts, loans with court injunctions, and rescheduled loans are included," the report said. Read more: No need to hike fuel price if BPC’s corruption and mismanagement end: CPD  The CPD mentioned that appointments of bank directors based on political connections, loans sanctioned on political grounds, rescheduling of loans despite poor record of repayment, and writing off loans to reduce the tax burden and clean balance sheets of banks are among the reasons behind the high volume of NPLs in the country. Besides, the weak internal control and compliance risk management of banks, lack of independence of Bangladesh Bank, dual regulation by the Financial Institutions Division and the central bank, and flexibilities given to defaulters by the central bank are also responsible for the high volume of the NPLs, it said.

Bangladesh Bank governor Abdur Rouf Talukder said that banks must comply with rules in debt management and other activities assuring that the central bank will ensure good governance in the banking sector. The governor was addressing the media at Jahangir Alam Conference Hall at Bangladesh Bank Bhaban on Thursday, his second meeting with journalists after assuming office on July 12. The central bank, meanwhile, identified the weak banks and it plans to talk to them one-to-one basis. These banks will get a three-year business plan for improvement under direct observation of Bangladesh Bank, he said. Failure in one bank would affect other banks and financial institutions. So, it is better to improve banks by good governance, he pointed out. The central bank has already assured banks’ managing directors (MDs) and chief executive officers (CEOs) of support regarding good governance, he said. Deputy Governors Ahmed Jamal, Kazi Sayedur Rahman, A.K.M Sajedur Rahman Khan, Abu Farah Md. Nasser, BFIU chief Masud Biswas, executive director (ED) and chief economist Habibur Rahman, ED and spokesperson Md Serajul Islam, and senior officials were present at the event. Rouf said the central bank has taken essential policy measures for a stable exchange rate, increasing the supply of dollars, curtailing unnecessary luxury imports and increasing vigil in the exchange market. But, it will take time to get results, he said. “We should be patient.” Ruling out raising the lending interest rate, the governor said that the BB prefers demand cut, imposing higher taxes to curb the inflation rate in the domestic economy due to external effects. Read: FY23: Bangladesh Bank raises agro credit target to Tk30,911 crore He also hinted at strengthening the bond market along with enhancing the equity supply in the stock markets. Reply to a query Rouf said banks have to ensure compliance in each sector and serve every citizen, influential or ordinary. Regarding the current account deficit, the governor said, “Our economy is heavily import-oriented. Fuel oil, gas, edible oil, food and even over 60 per cent raw materials for export-oriented industries are imported. This created an imbalance or deficit.”   The BB’s chief economist Habibur Rahman gave a presentation on different policy measures that have been taken by the central bank recently to stablise currency and money flow. The BB sold USD $ 7.4 billion in the FY2021-22 to keep foreign exchange supply smooth. The BB bought $7.7 billion from banks in FY 21 due to keeping a stable forex exchange rate.  The licenses of 10 exchange houses have been cancelled and notices were sent to another 45 houses to explain their transaction report and alleged violation of  money exchange rules. The BB has increased the interest rate on non-resident foreign currency deposits (NFCD) and benchmark (Eurocurrency deposit rate) by an additional 2.25 and 3.25 per cent to attract more foreign currency deposits.

President Abdul Hamid on Sunday called for establishing transparency and accountable good governance in  government activities to make  democracy more effective. "Democracy needs to be made more effective ...... by ensuring proper participation of the people in all government activities," he said  addressing thecParliament in the New Year's first session. This was also the 16th session of the 11th parliament. The president said that the government’s expenditure has increased due to huge increase of government’s development activities over the past one-and-a-half decade. He also urged to maintain caution in all matters related to  projects to prevent misuse of government funds.  Read:Islamic Front and NAP discuss formation of EC with President Hamid "It is necessary to ensure 100 percent implementation of the project by adopting time bound action plan,” he added. According to the constitution, the president  addresses the House in the first session of New Year highlighting progrmmes and achievements of the government. The president’s speech was approved earlier by the cabinet. Mentioning people as the source of all power  the President urged the legislators to keep public interest over everything else. Hamid called upon members  of the treasury and opposition benches to play their due role in the House. The president called for building national conference on basic issues of democeacy. rule of law and development. He said  the new generation  should be gifted a safe, happy, beautiful and prosperous Bangladesh as dreamt by Father of the Nation Bangabandhu Sheikh Mujibur Rahman. He  said peace and stability is prevailing in the country due to the zero tolerance policy of the government against terrorism and militancy,  He said that the government is trying to ensure that people from all communities of the country can practice their religion in harmony while religious festivals of all communities including Muslims, Hindus, Buddhists and Christians are  celebrated peacefully in a solemn and festive atmosphere.

Jatiya Party Chairman GM Quader on Tuesday said the country’s people now eager to see his party in power as the two major parties--Awami League and BNP--have failed to ensure good governance during their rule.

President of Liberal Democratic Party (LDP) Oli Ahmed on Sunday placed a 22-point proposal for’ restoring’ peace and good governance in the country as he expects the ‘one-party rule’ will end very soon.

Jatiya Party Chairman GM Quader on Monday said the incidents of killing, rape and injustice and misdeeds are on the rise in Bangladesh for lack of the rule of law and good governance.

Local Government and Rural Development (LGRD) Minister Md Tazul Islam on Sunday asked Union Parishad (UP) officials concerned to earn the people’s respect with good works.