Dhaka: Prime Minister's economic and planning adviser, Prof Dr Rashed Al Mahmud Titumir, expressed concerns over the dysfunctionality of the country's market system, indicating that a significant nexus in the financial sector has facilitated economic crimes. Speaking as the chief guest at a book-launching ceremony for "Forensic Accounting and Fraud Investigation" at Dhaka University, Titumir highlighted the issue of market capture and the lack of proper market regulation.
According to United News of Bangladesh, Titumir criticized the current state of market regulation, stating, "Our market is captured. The market is not being allowed to function as a market, and those who are supposed to regulate the market are actually becoming involved in this corruption. There are no price takers here; everyone is acting as a price maker." He emphasized that the crisis in the financial sector transcends academic concerns and is fundamentally political in nature.
Titumir further elaborated on the involvement of market regulators, governmental regulatory agencies, and bank directors in what he described as a 'political crime' facilitated by an 'evil nexus' at both horizontal and vertical levels. He revealed the fragile state of the banking sector, criticizing attempts to artificially show the default loan rate at 11 percent, when forensic assessments indicate the actual rate exceeds 35 percent.
To address the capital shortfall in the banking sector, Titumir stated that more than Tk 3,31,000 crore would be required. He attributed the distressed loans amounting to Tk 2,62,766 crore to regulatory forbearance. Moreover, he questioned the accountability of audit firms and professional bodies, urging them to fulfill their responsibilities to mitigate risks and prevent financial crimes and tax evasion.
Highlighting the need for institutional reforms, Titumir criticized the governance system of the past 17 years, stating that deliberate dismantling of institutions and fragmentation of the state machinery has led to the current financial sector crisis. He called for transparency, accountability, and forensic audits to address the ongoing issues and prevent future corruption.