Bangladesh Bank governor Ahsan H Mansur on Tuesday said that the central bank would soon issue a circular ensuring that 50 per cent workforce of the agent banks would be women.
Speaking at a roundtable discussion titled Path to Recovery for the Banking Sector, organised by an English daily on Tuesday, he expressed confidence that agent banking would eventually surpass traditional banking in reach and impact, particularly in rural areas.
He also emphasised the importance of gender inclusivity and empowerment in the financial sector.
Mansur also addressed various challenges and outlined the central bank鈥檚 upcoming initiatives to restore stability and efficiency in the financial system.
Mansur strongly criticised the practice of appointing unqualified individuals, like wives and daughters of bank owners, as directors.
He stressed that such appointments undermine the integrity of the banking sector and that all directors, including existing ones, must go through a fit and proper test to assess their qualifications and experience.
He further stated that bank owners also would need to pass this evaluation process.聽 If they qualify, they can be directors; otherwise, they cannot.
Mansur outlined plans to strengthen the central bank, with assistance from the World Bank in identifying global best practices.
He reaffirmed his commitment to ensuring the independence of the Bangladesh Bank by July-August of this year, noting that while significant reforms cannot be completed by the interim government alone, a strong foundation will be laid for the next government to build upon.
Mansur acknowledged the complexities of repatriating wealth siphoned abroad, stating that such efforts take years.
However, he remained hopeful, citing successful examples from countries like Nigeria, Malaysia, and Angola.
Regarding weak banks recovery, he said that the BB is closely monitoring the management and operations of weak banks daily. Despite providing substantial liquidity support, these banks will need 5-10 years to fully recover with sufficient capital.
On the economic front, Mansur highlighted Bangladesh鈥檚 improved balance of payments.
He emphasised that the government鈥檚 reliance on borrowing is unsustainable and that increasing tax revenue is the only viable solution to addressing budget deficits.
If revenue collection improves, Bangladesh will not have to depend on the International Monetary Fund for financial support. Mansur confirmed that he had already informed the IMF that Bangladesh does not require its funds at the moment.
To address operational challenges faced by banks, Mansur announced the formation of a banking regulatory simplification task force.
This body, comprising bank managing directors and experts, will streamline central bank policies and reduce the burden of excessive reporting requirements.
The governor also called for collaboration among banks to submit suggestions for regulatory simplification.
