DHAKA, Oct 3, 2024 (BSS) – Newly elected Chairman of Bangladesh Association of Banks (BAB) Abdul Hai Sarkar today said the association sought support from the government to avail loans under a package from the development partners (DPs) to rescue the problematic banks.

“We’ve (BAB) sought Finance Adviser’s support for arranging loans under a package from the development partners like the International Monetary Fund, International Finance Corporation, ADB, and the World Bank to help revive and rescue some eight to nine weak banks as it would be the best way to rescue these banks,” he said.

The BAB Chairman was talking to reporters after their delegation held a meeting with the Finance and Commerce Adviser Dr Salehuddin Ahmed at the Finance Division Conference Room at Bangladesh Secretariat this afternoon. 

Noting that the strength of the banks is its depositors, he said if the depositors do not deposit, then banks would be on the verge of collapse and thus could not lend loans.

Sarkar said every problem in the world comes up with a solution adding, “We’re trying to work out to resolve the problems in the banking sector”. 

He went on saying, “The banks which are in good shape are good, but we also have to help survive the weak banks. In this regard, we’re developing a rapport with the government so that we can help survive the problematic banks,” he added.

Without mentioning the names, he alleged that some bank owners (like S Alam) were assisted to emerge as mafia in the past regime.

In this regard, he said the government should not interfere unnecessarily in the banking sector.

Asked about some specific proposals submitted before the Finance Adviser, he said they have proposed the Adviser to take steps for not allowing the loan defaulters and money launderers for contesting their cases with concerned courts here through representatives, rather they have to surrender and appear before the courts physically.

“The fugitive loan defaulters (now staying abroad) shouldn’t have any right to send their representatives to courts to contest their cases and such facility should be scrapped immediately…otherwise how come we’ll get back our money given from banks.”

Replying to another query, he said loans at concessional rates should have to be provided to the weak banks to help those survive. “It’s not possible to help those survive only providing support from the Bangladesh Bank,” he added.

The BAB chairman said they sought some general help from the government to revive this banking sector like how to salvage and rescue those banks which are in bad shape, how to minimize the number of willful defaulters and synchronizing various policy decisions.

Answering to a question, he said all concerned should give proper policy support to the RMG sector amid the ongoing situation.

Citing that many clients did not pay back their huge amount of loans taken in the past regime, Sarkar said some bank directors might have been involved in such incidents, but he was not involved.

Responding to another question that one business conglomerate previously held the ownership of nine banks, Sarker, without mentioning the name, said that person did not come to the banking sector to do business, rather to ruin the good performing banks. 

“We’ve nothing to do as all of you know from where (high ups of government) such directives used to come and what could have been the consequences if those directives were not followed,” he added.

About the prospect of the fragile banking sector, he said, “With the current interim government in place, Insha Allah, the sector will make a …,”

Sarkar, also the Dhaka Bank Chairman, noted that the banking sector ran very smoothly when the current Finance Adviser was the then central bank governor. 
“After his departure, the banking sector witnessed various sorts of complexities as there were various dictations and unjust pressures from the then government,”

He said with the prudent leadership of the Finance Adviser and the central bank governor, the banking sector would hopefully get a prudent policy. 

“You can get the right policy from us,” Sarker said quoting the Adviser as saying.

The BAB president, however, said it would take some time.

He said when a bank falls into trouble, then the depositors usually do not support that bank as they withdraw their deposits. It will take certain time to grow trust and confidence among the clients and depositors, he added.

“But, the way we’re proceeding and the current government is lending us support, I’m sure that our problems will be resolved,” Sarkar said.