Bangladesh Bank (BB) Governor Dr Ahsan H Mansur on Thursday said the central bank is working to establish a dedicated Bank Resolution Fund worth between Tk 30,000 crore and Tk 40,000 crore to manage financial crises without relying on government budgetary support.
“The primary objective of this fund is to ensure that the financial sector does not have to wait for government budgetary allocations during times of crisis,” he said while speaking as the chief guest at a discussion titled “Banking sector: current state and future challenges” at Jagannath University in the capital.
The event was jointly organised by the Bangladesh Economics Association (BEA) and the university’s Department of Economics.
Dr Mansur said the proposed resolution framework would not be confined to banks alone but would also cover non-bank financial institutions (NBFIs).
Commenting on regulatory autonomy, he said that although Bangladesh Bank is not fully independent by law, it is currently operating independently, stressing the importance of preserving this operational freedom in the future.
He also underscored the need to shield banking operations from individual-centric control, noting that major global banks are not run as family businesses but are managed through professional administrative systems.
Referring to the structure of Bangladesh’s financial system, the governor observed that while banking typically ranks third among financial sectors globally, it occupies the top position in Bangladesh. This, he said, indicates that other financial sectors are in a weakened state and require long-term efforts to restore them alongside the banking sector.
To curb tax evasion, Dr Mansur called for a shift towards a cashless society, describing cash as the primary instrument for evading taxes. He estimated that a cashless system could boost annual revenue collection from Tk 1.5 lakh crore to Tk 2 lakh crore. He also urged that all students be brought under the institutional banking framework.
Jagannath University Vice-Chancellor Professor Dr Md Rezaul Karim, who attended the programme as a special guest, said the public is increasingly becoming aware of the fragile condition of the banking sector in the past, expressing hope that ongoing recovery efforts would gradually deliver positive outcomes.
The session was chaired by BEA Convener Professor Dr Mahbub Ullah, with a welcome address delivered by Member Secretary Professor Dr Mohammad Helal Uddin. Deans, department chairs, teachers and students were present at the event held at the university’s central auditorium.
