Elected government will oversee major banking sector reforms: Finance Adviser

Finance Adviser Salehuddin Ahmed has said that comprehensive reforms in Bangladesh's banking sector will be undertaken by the next elected government, as such changes require long-term planning and legitimacy that the current interim administration cannot provide.

He made the remarks during a view-exchange meeting with senior officials of the Nabinagar Upazila administration in Brahmanbaria on Saturday morning (July 4).

"Reforming the banking sector is a complex and time-consuming task," the adviser said. "The current government is laying the groundwork, but the responsibility for implementation will rest with an elected government."

Highlighting the scale of the crisis, he revealed that the Bangladesh Bank recently injected Tk 52,000 crore into 12 financially distressed banks, following a previous disbursement of Tk 22,000 crore. "Many individuals have taken money abroad—something not seen in most other countries,” he noted. “These measures are only temporary solutions."

Salehuddin Ahmed pointed to Islami Bank as an example of how trust can be rebuilt in the private banking sector. He added that a new law—the Bank Resolution Act—has been enacted to protect depositors and support the rehabilitation of weak banks. "Under this law, customers’ money is secure, though accessing it may take time if a bank is in trouble," he explained.

On savings certificate interest rates, Ahmed defended the current levels, saying they are appropriate for maintaining economic balance. "If we raise the rate further, people will stop depositing money in banks, leading to a liquidity crisis. A balance must be maintained between savings instruments and bank deposits."

The adviser also mentioned that technical assistance is being used to assess struggling banks and guide recovery plans.

The meeting was chaired by Brahmanbaria Deputy Commissioner Md Didarul Alam and moderated by Nabinagar Upazila Nirbahi Officer Rajib Chowdhury. Other attendees included Nabinagar Circle Additional Superintendent of Police Piyas Basak, Assistant Commissioner (Land) Khaled Bin Munsur, and Nabinagar Press Club President Mohammad Hossain Shanti.