World Bank country director to India Junaid Kamal Ahmad has said practice of ethics in parliament is critical to practice of ethics in the banking system.
He made the remark while giving the keynote speech at the eighteenth Nurul Matin Memorial Lecture titled ‘Ethics in Banking’ at the Bangladesh Institute of Bank Management auditorium in Dhaka Monday evening.
Junaid said, ‘A parliament that follows the principles of ethics is critical to the growth of an ethical banking system.’
Bangladesh Bank governor Fazle Kabir presided over the session while BIBM director general Abdur Rahim offered welcome address at the discussion.
Junaid, a Bangladeshi national, recommended strengthening the independence and capacity of the central bank for the safeguard of Bangladesh’s banking system.
He said ethics in the financial system was critical to establishing trust of public in the banking system.
The impact of corporate governance measures would depend on the strength of the overall governance around the financial sector, he said.
He also stressed the importance of central bank in securing stability and efficiency of the banking system.
Junaid also emphasised the importance of the civil society for creating additional voice in the check-and-balance in the financial system.
Fazle Kabir said unscrupulous activities sometimes overshadowed incredible achievements in the country’s banking system.
‘Not only the technique of fraudulent practices has changed but also the heightened aspirations of many stakeholders make the banking system vulnerable,’ Kabir said.
Collusion between the bankers and the adventurous and influential borrowers poses threat to the entire economy, the central bank’s governor said, adding that such a situation made ethical behaviour more difficult and challenging.
He underscored the heightened need for promoting ethics in banking.
Fazle Kabir expected that the Memorial Lecture would motivate young bankers towards honesty and patriotism and would move them towards more professionalism in future.
A good number of members of BB board of directors, former governors, deputy governors and senior central bankers attended the discussion, among others.
BIBM initiated the Memorial Lecture programme in 1997 to boost ethics of banking.
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