Finance and Planning Minister Amir Khosru Mahmud Chowdhury on Friday said the government would no longer allow political appointments in banks, regulatory agencies and other financial institutions as part of broader reforms aimed at restoring confidence in the financial sector.
Speaking at a policy symposium on the post-uprising economy and budget expectations at Le Méridien Dhaka, Amir Khosru said professional leadership would replace politically influenced management across the financial system.
“There is not going to be any political appointment. Professional people will be working there,” he said.
The minister said the decision would apply to all major financial institutions, including the Bangladesh Securities and Exchange Commission (BSEC).
He also announced that major reforms in the capital market would become visible within the next two months as the government moves forward with deregulation measures designed to revive investor confidence.
Amir Khosru blamed weak financial reporting and poor auditing standards for much of the corruption and instability in Bangladesh’s banking system and stock market.
“Financial reporting in Bangladesh is unfortunately in a very bad shape,” he said, adding that unreliable audits and inaccurate company disclosures had contributed to large-scale irregularities in bank financing and capital market activities.
The minister acknowledged that many banks are now facing severe capital shortages and large volumes of non-performing loans.
Without naming institutions, he criticised the lavish lifestyles of some bank sponsors despite the poor condition of their banks.
He said the government has already engaged international organisations, including the International Finance Corporation, along with foreign investment banks and fund managers to support reforms and address capital deficiencies in the sector.
Khosru stressed that Bangladesh would need greater foreign participation in its financial sector, saying domestic financing and management capacity alone are no longer enough to sustain economic growth and stability.
