Tk60,000cr needed annually to restructure banking sector: BB Governor

Bangladesh Bank Governor Md Mostaqur Rahman has said on Saturday that Bangladesh would need Tk60,000 crore annually from the national budget over the next five to eight years to address financial losses in the banking sector and carry out structural reforms and reconstruction.

He made the remarks as the chief guest at a programme promoting Bangla QR transactions organised by ONE Bank PLC at United International University (UIU) in Dhaka.

Highlighting money laundering and widespread financial irregularities in the banking sector, the governor said nearly one-third of the banking system’s total funds had been looted by the time he took office.

The massive outflow of money from banks had caused significant damage to the country’s economy and development activities, he said.

Mostaqur said the amount of money lost could have been used to support two crore families or build two major infrastructure projects similar to the Padma Bridge.

Criticising those responsible for the liquidity crisis in the banking sector, he said ordinary words were insufficient to describe the severity of the financial crimes.

He described the incidents as more than ordinary theft, saying they involved the deliberate looting of public money and had weakened the banking system.

The governor said strict legal action was being taken to bring those involved in financial irregularities and money laundering to account.

Initiatives were also under way to recover the money and assets taken from the banking sector, he added.

He stressed the need for long-term measures to address the sector’s financial losses and restore stability to the banking system.