Dhaka: Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday called for urgent legal reforms to shield the country’s banking system from political interference, stressing that institutional independence is essential to prevent future financial irregularities. Speaking at a roundtable discussion titled ‘Impact of LDC Graduation on Banking Sector’ in Banani, Dr. Mansur highlighted a proposal to amend the Bangladesh Bank Order, submitted to the government four months ago, which he said is critical for modernizing the central bank’s regulatory framework.
According to United News of Bangladesh, Dr Mansur expressed regret that the amendment has not yet been approved, emphasizing its necessity to prevent future political meddling. He underscored the importance of having a modern central banking system supported by law to ensure the institution’s autonomy.
Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition due to economic challenges, the governor rejected such calls, pointing to Bangladesh’s strong performance across development indicators. He argued that remaining in the LDC group is no longer honorable for the nation and advocated for aspiring to join developing countries like Malaysia or India.
The governor criticized the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for their past inaction during episodes of money laundering and the controversial ‘6-9 percent’ interest rate cap. He noted that business organizations have behaved passively and that such behavior weakens the democratic process.
During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, voiced concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have resulted in significant job losses. Dr Mansur acknowledged the high interest rates but attributed the situation to money being siphoned out of the country, which has increased non-performing loans. He expressed optimism that once governance improves and inflation is controlled, interest rates will ease.
The event was organized by the International Chamber of Commerce, Bangladesh (ICCB), with its president Mahbubur Rahman moderating and attended by economic analysts, policymakers, and business leaders.