Protect banks from irregularities | daily-sun.com

Protect banks from irregularities

    1 November, 2017 12:00 AM printer

According to media reports, Social Islami Bank Limited (SIBL) got a new board chairman, executive committee chairman and managing director as per the decision of the board of directors. The alleged involvement of the immediate past chairman in terror financing, money laundering, corruption and irregularities and his links with political forces known for anti-liberation activities brought forth the changes.


Analysts think, recruitment of men of less professional integrity is mainly responsible for plunging banks into crisis.

As per the report, pecuniary irregularities of the chairman plunged SIBL into a deep crisis. Allegedly, in collaboration with members of the board of directors, he facilitated disbursement of a huge amount of loans in favour of dubious entities without following due process.


As alleged, he also helped in siphoning off money to accounts of those quarters that were involved in the Holey Artisan carnage. The Anti-Corruption Commission and intelligence groups have found that the chairman used to interfere in decisions of the board members for getting his sinister designs implemented. And all his actions were directed towards a common goal – to support certain anti-liberation and anti-government political forces. This is threatening to the development of the economy as well as the sustainable peace in the country.


In fact, the country’s banking sector has been suffering badly from irregularities of the high officials who represent the owners. Though banks are bound to take approval from the central bank for appointing owners’ representatives, this provision is often ignored.


Mainly, over application and misuse of power by the people of owner families in most cases lead to large-scale anomalies in the banking sector.

 

As a result, security of public money in banks has become volatile. What is alarming is that people are increasingly losing confidence in the banking sector and their propensity for saving money in banks is decreasing day by day. If this situation continues, savings of people will be wasted mainly for unproductive purposes.      


In short, misuse of the power of high bank officials leads to massive irregularities in financial institutions and this not only causes loss at the individual level but also at the national level. We cannot afford this to continue anymore. Authorities concerned should take measure to protect the banking sector from all sorts of undesirable practices.


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