Finance Minister AMA Muhith on Monday directed the high-ups of state-owned banks and financial institutions to carefully handle three problems — forgery, default loans and bank exposures.
“They (high-ups of state-owned banks and financial institutions) must handle three problems carefully,” Muhith told reporters answering to their queries at his Ministry.
Muhith made the directives during his first meeting, after the formation of the new government, with the chairmen and managing directors of different state-owned banks, specialised banks, financial institutions, insurance companies, Bangladesh Securities and Exchange Commission (BSEC) and Micro-credit Regulatory Authority (MRA) met him.
Elaborating the three problems, the Finance Minister said the high-ups of the banks and financial institutions would have to be very cautious and remain alert as there are often incidents of forgery in the banking sector without the knowledge of the Board of Directors concerned.
He said every official would have to be very cautious about the culture of default loans as it refers to the ill health of the banks and financial institutions concerned. “The main reason for loan default is corruption.”
The Finance Minister went on saying, “We’ll have to lower the amount and the number of default loans, and there must be continued efforts. If the choice of party is wrong or lending is not proper, then default loans would emerge.”
There should also be a balance of banks exposures to the borrowers, parties and sectors, Muhith said adding that elimination of corruption should not only be possible only through punishment, but through enforcement of the system.
There is a need for giving proper attention by the high-ups of the banks and financial institutions on the basic features of the system which are banks exposures, lowering default loans and curbing forgery and corruption.
State Minister for Finance MA Mannan was present both at the meeting and the briefing.
Source: UNB Connect
