Banking sector to be brought under reform commission: information minister

The government will bring the banking sector under a reform commission to address longstanding governance weaknesses and restore stability in the financial system, Information Minister Zahir Uddin Swapon said today.

"We will bring banking sector reforms, changes and restructuring under a commission. There is no other way to do it," he said while speaking at a seminar titled "Good Governance in the Banking Sector and the Role of the Media" at the Economic Reporters' Forum (ERF) office in Dhaka.

"If we can talk about commissions for media reform, anti-corruption measures and administrative reforms, then why should we not reform such an important sector as banking? We will definitely do it," he added.

The minister said good governance in the banking sector cannot be viewed in isolation from the country's broader political and institutional framework.

"If the state fails to ensure overall good governance, the presence of the media alone will not be enough to bring discipline to the banking sector," he said.

The minister also alleged that state statistics had been manipulated during the previous administration and used as a political tool.

"There was a time when data and performance indicators were altered to suit political narratives. The situation had reached a point where authorities were effectively presenting day as night and night as day.”

“Such manipulation of official statistics is impossible without state patronage," he added.

Referring to the country's economic evolution, he said the expansion of the private sector was built on the economic liberalisation initiated by the former president, Ziaur Rahman.

The minister also urged policymakers to reduce excessive reliance on banks as the primary source of financing and instead strengthen the capital market.

"Those who misappropriated depositors' money in banks are the same groups that looted funds from small investors in the stock market," he said.