BAB: 'Some Banking Laws Hinder Business and Investment'
Photo: Agamir Somoy
Some laws and regulations in the country's banking sector are creating obstacles to business expansion and new investment, according to Abdul Hai Sarker, Chairman of the Bangladesh Association of Banks (BAB).
He said that promising entrepreneurs should not have their opportunities limited due to past irregularities and crimes. In the current reality, there is a need to reconsider certain banking-related laws.
He made these remarks on Wednesday after a meeting with the Governor of Bangladesh Bank.
Mr. Sarker said there are certain "black laws" in the country's financial sector that are hindering the natural development of business and industry. He argued that it is not appropriate to impose the burden of past crimes committed by some on honest and capable future entrepreneurs. Therefore, these laws should be reviewed according to the needs of the time.
He also criticized the existing restrictions on holding directorships in multiple banks. He argued that imposing excessive restrictions on those who have the capability to build multiple industrial establishments could hinder investment, job creation, and export expansion.
According to the BAB Chairman, withdrawing money from banks through the influence of power while ignoring rules and regulations is not a normal banking process; rather, it is a form of plunder. This has led to the gradual weakening of sound and strong banks.
When asked about the possibility of returning ownership of Islami Bank to its founders or original owners, Abdul Hai Sarker expressed an affirmative hint.
He said that if any rightful owner was unjustly removed, the matter of reinstating them to their responsibilities or ownership could be considered. However, in such cases, the individuals concerned must have a good track record and the capability to play an effective role in the bank's development and stability.
He added that in the interest of keeping the bank operational and strong, qualified and experienced former owners could be given the opportunity to resume their duties if necessary.
