Editors’ Council raises concerns over Bank Resolution Act

The Editors' Council has expressed concern over Section 18(a) of the Bank Resolution Act and discussed a range of issues affecting the country's banking sector with Bangladesh Bank Governor Md Mostaqur Rahman.

The concerns were raised during a meeting held at the central bank's headquarters Monday after which New Age Editor Nurul Kabir briefed journalists.

He said the council highlighted deep concerns over the challenges facing the banking sector, particularly the rising volume of non-performing loans, the need to establish good governance in banks, the security of depositors' funds, and the current situation in the foreign exchange market.

The council also raised concerns over recent instability surrounding Islami Bank Bangladesh PLC, along with broader issues related to inflation control, investment and employment conditions, and the proposed national budget.

According to a press release of the central bank, the governor informed the delegation about ongoing reform initiatives and future plans aimed at stabilizing the financial sector. He assured that necessary measures would be taken to address existing challenges.

The governor said progress was made in the process of merging weak banks, including administrative and managerial restructuring. He added that once the core banking systems of these institutions were fully developed and integrated, the restructuring process would accelerate further.

He also stated that amendments to the Money Loan Court Act were underway to ensure faster disposal of default loan cases, while the proposed Distressed Asset Management Company Act is being prepared to deal with unrecoverable loans.

Members of the Editors’ Council offered several constructive suggestions during the meeting. Both sides expressed their commitment to continued cooperation for strengthening governance, stability, and overall development of the banking sector in Bangladesh.