Thursday, 2 February, 2023

Is ownership of several banks covered by law?

  • Alauddin Ahmed Chowdhury Nasim
  • 6th December, 2022 01:41:12 PM
  • Print news

The law used to allow at best two persons of a family to become directors of bank in the past. Such number of directors from a family hiked to four following an amendment to law four years back.

Family comprises parents, children and siblings. The objective of the law is to deter a family from reigning over a bank and committing irregularities.

However, seven banks and two other financial institutions in possession of a single family in the country have made headlines and sparked sharp criticism in the last couple of days.

It is astonishing that nobody questions about the authority of the law in vesting so many banks and financial institution on a particular family.

Some experts associated with the Bangladesh Bank, Ministry of Finance and civil society make statements on financial irregularities without focusing on the legal proposition.

Now, a question travels in the mind as to whether the law allowing four directors from a family is not effective.

Has anybody established ownership of several banks through loopholes of law? 

Proper explanation of law and effective steps on the part of the central bank and other authorities concerned are imperative to combat monopoly and corruption in the banking sector.

(The writer is former protocol officer to Prime Minister Sheikh Hasina)