Bangladesh Bank quests for transparent officials
Bangladesh Bank is highly worried about the lack of transparency among officials holding important posts in the commercial banks.
According to the perceptions of Bangladesh Bank authority, the sums of defaulted loans are constantly rising due to the dishonesty of some officials of the scheduled banks while some other reasons are there too.
Bangladesh Bank (BB) upholds the idea that the corrupted bank officials disburse big amounts of loans to some suspicious clients without properly scrutinizing the papers of the loan applicants. A large magnitude of corruption takes place between bankers and loan recipients in such cases, according to sources closely affiliated with the central bank.
An ambience of mistrust and doubts have emerged among general people about banks due to unabated instances of defaulted loans, financial scams, money laundering and other irregularities. Extensively mounting defaulted loans discourage entrepreneurs to invest for their business ventures in the country.
This is how the flow of investments is going down. Reputed economists have again and again said that investors will not put their money at risk in a situation where good governance across banks does not prevail.
At the same time defaulted loans invariably lead to money laundering which is another financial vice. In recent times money laundering through fake import papers and fraudulent letters of credit (LC) is increasing. Import costs have gone up severely while trade deficit has exceeded all previous records. These are very ominous signs for Bangladesh's economy according to financial experts.
Under these circumstances it has become indispensable to put transparent and incorruptible officials in certain posts of both state-owned and private banks. Bangladesh Bank believes that if the bank officials abstain from corruption, they can eradicate graft and anomalies from the banking sector to a massive extent.
Bangladesh Bank has meanwhile issued directives how to find out honest officials from the existing human resources of the commercial banks. Motivation and sincerity are required to encourage bank employees to practice transparency in their professional careers, the central bank's senior officials have told media.
In terms of Bangladesh Bank's guidelines, employees of all banks will have to attend an exam of 100 marks. Those who will qualify the test at the final level will be titled "honest officials". Moreover, the finally selected officials will receive transparency certificates and an amount of money equal to one month's salary as a motivational prize.
However, Bangladesh Bank's former Deputy Governor Khondaker Ibrahim Khaled has said that it is more important to get hold of the corrupted bankers instead of making these arrangements for finding out honest officials. Corrupted bankers are causing damages to banks and financial institutions frequently.
So, it is more essential to fight corruption from banks by terminating the officials of different banks who are involved with various unlawful activities, Khondaker Ibrahim Khaled further said. He added that the top officials of some banks who are responsible for a number of monetary rackets have not been yet punished in exemplary ways.
Bangladesh Bank launched a campaign on Wednesday and declared particular instructions to establish integrity on the banking turf. A circular containing this order from the central bank signed by General Manager Abu Farah Mohammad Naser has been already dispatched to the chief executive officers of all scheduled banks.
Dr. Zaid Bakht, Chairman of Agrani Bank has said that rewards for honesty and punishment for unethical activities both should be initiated in all banks. Higher officials of a number of banks are facing grim corruption charges connected with loan scams. M
anaging directors of some banks are facing corruption cases. Sonali Bank Limited's former Managing Director Humayun Kabir and Basic Bank's former Managing Director (MD) Kazi Fakhrul Islam have been absconding for a long time to avoid actions over graft charges against them. Besides, Agrani Bank's former MD Syed Abdul Hamid is free on bail over another corruption case.
Bangladesh Bank's former Executive Director Mahfuzur Rahman has said that the managing directors of some banks are directly immersed in irregularities connected with loans. The banking sector needs to be rectified right now. Otherwise the banking arena will be absolutely devastated, Mahfuzur Rahman further stated.
Finance Minister AMA Muhith has been heavily criticized by economists and politicians for his alleged incapability to halt graft and financial offences in banks. Esteemed citizens have said that all banks need to be kept away from political influence to sustain accountability and uprightness among bankers.
Huge sums of money from different banks have been plundered by scammers under cover of loans. Reportedly the recovery process of this rampaged money is fully uncertain. Bangladesh Bank's report has unveiled that till March this year defaulted loans have reached 88 thousand 589 crore taka.
Out of this figure 73 thousand 619 crore taka has become bad loans. Moreover, banks have written off approximately 48 thousand 192 crore taka. Defaulted loans amount to 1 lakh 36 thousand 781 crore taka if the written off credits are added.
Bangladesh government formulated the National Integrity Strategy endorsed by the Cabinet in 2012 to establish transparency and good governance in all services. Bangladesh Bank has asked all banks to implement the scheme of finding out honest officials with effect from 2018. All employees of banks from top to bottom will have to be brought under this program--Bangladesh Bank has told the scheduled banks.
The 100 marks exam which the commercial banks have been ordered to carry out include twenty specific indicators. These indicators include professional knowledge, efficiency, reflections of honesty, reliability, dutifulness, disciplinary attributes, behavior with colleagues, behavior with clients, respect for institutional code, coordination, leadership quality, information & communication technology (ICT) skills, health awareness, environmental consciousness, inclination towards social media, safeguarding confidential data, presentation aptitude, eagerness to modernize banks, level of cooperation to solve complaints, regulatory compliance and obedience to the activities dictated by their institutions.
Bangladesh Bank's directives state that nobody will be nominated for awards without scoring at least 80 on 100 marks in the honesty test.
Former Secretary Hafiz Uddin Khan has said, "It is very important to inspire officials of all organizations to work honestly. The adverse effects of corruption should be lucidly explained to the staffs of all offices including banks. Simultaneously, stern actions need to be taken against the officials who are found dishonest."
Professor Abu Ahmed, Economics Department, Dhaka University told The Asian Age, "Lack of honesty is an unavoidable problem in Bangladesh. Corruption and development cannot go ahead together.
The government should take up firm measures to restrain all banks from illegal loan disbursements. Powerful clients should not be allowed to escape punishment after defaulting loans or laundering money."
Source: https://dailyasianage.com