‘Steps taken to prevent disaster in banking sector’

Parliament Correspondent: "Any disaster in banking sector, if happened, may destroy the entire country. Taking the issue seriously, we take steps to check disaster in banking sector," said Finance Minister Abul Maal Abdul Muhith.

The minister made the comment after taking part in discussion over the budget of fiscal year 2017-18 in the parliament on Thursday.

Muhith said, "There are allegations that banks are not responsible. Banks have turned into a family institution. There is no individual director in banks. Good governance is rare here. Family members of bank directors are given priority here. The parliament is taking the Act into its account. The parliamentary committee is considering it and they will give proposal and recommendation in this regard. Then it will be placed before the parliament for passage. After getting that report, the stance of the government will be known regarding this. The matter is still awaiting decision."

There are also allegations that banks are being given unnecessary subsidy. It is said that banking sectors are very vulnerable and to tackle this vulnerability, the government is taking steps, he said.

The finance minister said, “The main problem is good governance. The government did not make any good outcome in the past doing business. For this, I suggest keeping the government aloof from the business. 80 percent of business is done through banks and the government does the remaining 20 percent. As business men do well in business, I like to let loose 80 percent of business to them. Our government is working with honesty for the good governance of banking sector and money market. Now all can see the outcome of money market and the same outcome will be seen in banking sector.”

risingbd/DHAKA/June 29, 2017/MA Rahman/Amirul