Former adviser to a caretaker government AB Mirza Azizul Islam on Saturday said that the proposed amendment to the Bank Companies Act was contrary to good governance in the financial sector.
Speaking at a mock debate on good governance in the financial sector as chief guest, he said that such amendments would widen control of a family over the banks and the depositors’ interests would be affected.
Debate for Democracy organised the event in the capital.
The cabinet on May 8 approved a draft bill seeking amendment to the Bank Companies Act 1991 to allow four from a family to be bank directors which, according to experts, would widen family control on private commercial banks.
The proposed amendments would also extend the tenure of directors of private commercial banks to three consecutive terms from two.
The former adviser also said that the depositors were being affected by depositing money in the banks for lack of existing good governance in the sector.
About investment financing, Mirza Aziz, also an economist, said that the rate of investment particularly in the country’s rural areas was very low. ‘It may be caused by capital flight,’ he said.
About Tax-GDP ratio, he said that Bangladesh’s performance in TAX-GDP ratio was the lowest in South Asian countries.
He suggested that the government should reduce tax rate and widen the area of tax net.
‘It is also necessary to ensure equitable realisation of tax,’ he said.
He also called upon the authorities concerned for establishing financial loan court to dispose of the cases related to the financial scams to bring good governance to this sector.
Debate for Democracy chairman Hassan Ahamed Chowdhury Kiron said that a section of dishonest politicians, businessmen and bureaucrats was making money through corruption in the financial sector.
Over one crore migrant workers were sending their hard-earned remittances from $14 to $15 billion dollars every year and the corrupt people were laundering the capital to different countries in the name of second home and Begum Palli, he said.
He also said that the negative impact would become apparent in the country’s economy unless the good governance was established in the financial sector.
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