Dhaka: Transparency International Bangladesh (TIB) has raised concerns regarding the independence of the newly appointed Governor of Bangladesh Bank, questioning whether he can effectively manage his responsibilities without conflicts of interest influencing his decisions.
According to United News of Bangladesh, TIB has specifically questioned the impartiality of the governor, who has been involved in the readymade garment and real estate sectors and has rescheduled loans for his own company under special considerations. TIB Executive Director Dr. Iftekharuzzaman highlighted the governor’s history as a borrower and loan defaulter, and his subsequent benefit from loan rescheduling, raising doubts about his ability to lead the central bank impartially.
Dr. Iftekharuzzaman emphasized the governor’s significant roles in influential business lobbies, including the readymade garment sector, real estate sector, ATAB, and the Dhaka Chamber. He questioned the ability of a governor, appointed hastily, to meet public expectations of restoring order in a banking sector that has suffered under what he described as ‘an authoritarian kleptocratic regime.’ Dr. Iftekharuzzaman stressed the importance of the governor being free from the influence of business lobbies, borrowers, and loan defaulters.
The statement from TIB also pointed out that a significant percentage of Members of Parliament and Cabinet members are primarily businesspersons, with a notable proportion being loan defaulters. In this context, Dr. Iftekharuzzaman questioned the risks of appointing a ‘loan-defaulting businessperson’ as governor, noting the individual’s prior benefits from loan rescheduling and policy capture.
The appointment is unprecedented, marking the first time in Bangladesh’s history that a businessperson has been appointed Governor of the central bank. Dr. Iftekharuzzaman expressed concern that this could turn the central bank into an instrument of business lobbies reliant on defaulted loans and political connections, rather than safeguarding national interests. He also questioned the prudence of appointing someone from the ruling party’s election management committee to lead the central bank, especially when the BNP has pledged to ensure good governance and transparency in the banking sector.
Dr. Iftekharuzzaman concluded by emphasizing the fragile state of the banking sector, which was undermined by partisan considerations and vested interest facilitation during the previous authoritarian regime. He underscored the critical importance of good governance in the financial sector, particularly in attracting foreign investment amid current economic challenges, and questioned the effectiveness of the current appointment in achieving these goals.