DHAKA, May 23, 2024 (BSS) - The Centre for Policy Dialogue (CPD) today laid emphasis on devising and implementing a comprehensive reform agenda to overcome challenges in the banking sector.

The think tank observed that the reform agenda should aim to reduce the Non-Performing Loan (NPL) and establish good governance in the banking sector.

CPD made the observation at a dialogue on "What Lies Ahead for the Banking Sector in Bangladesh" at La Vita Hall, Lakeshore Hotel in the city.

Deputy Leader of the Opposition of Bangladesh Parliament Barrister Anisul Islam Mahmud and Chairman of the Parliamentary Standing Committee on Ministry of Planning M A Mannan were present at the dialogue as special guests.

Former Governor of the Bangladesh Bank Dr Salehuddin Ahmed, Executive Director of the Policy Research Institute of Bangladesh (PRI) Dr Ahsan Habib Mansur, former Chairman of the Association of Bankers, Bangladesh Limited (ABB) Mohammed Nurul Amin, Vice President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Arshad Jamal (Dipu) and Journalist and Adjunct Professor Department of Journalism and Media Communication of Green University Syed Ishtiaque Reza attended as distinguished discussants.

CPD Distinguished Fellow Professor Mustafizur Rahman presided over the session while CPD Executive Director Dr Fahmida Khatun delivered the keynote speech.

In her speech, Fahmida Khatun said appointment of board members of commercial banks should be depoliticised and based only on qualifications and experiences and loans should be sanctioned based on the central bank's "Guidelines on Internal Credit Risk Rating System for Banks".

Single borrower exposure limit for commercial banks should be strictly enforced, she added.

She focused on stopping the repeated rescheduling and write-offs of NPLs permanently.

She said the Internal Control and Compliance Departments of commercial banks should be revitalised, and effective internal audits should be ensured.

The central bank should appoint firm administrators to oversee the operation of troubled banks which cannot comply with BASEL III requirements, she added.