The Centre for Policy Dialogue (CPD) has reported that Tk 92,261 crore was embezzled in 24 significant banking scandals from 2008 to 2023.
According to the think tank, many banks are effectively insolvent but have been propped up through bailouts. They have recommended that banks on the brink of collapse be permitted to shut down.
This embezzled amount represents 12 percent of Bangladesh`s national budget for the 2023-24 fiscal year and 2 percent of the country`s GDP for the 2022-23 fiscal year.
The CPD released this information at a press conference addressing the banking sector, which is under heightened scrutiny following the appointment of Nobel Laureate Prof. Muhammad Yunus as interim head of government after Sheikh Hasina`s departure amid widespread unrest on August 5.
Concerns Over Banking Sector Instability
The CPD highlighted ongoing vulnerabilities in the banking sector, noting a troubling trend of high loan defaults. They criticized the previous government for failing to uphold promises made to protect the banking sector, as outlined in policy documents and the election manifesto.
Fahmida Khatun, CPD`s Executive Director, noted that several once-reputable banks have deteriorated in performance due to hostile takeovers by crony capitalists.
The briefing was attended by CPD Distinguished Fellow Prof. Mustafizur Rahman, Research Director Khondaker Golam Moazzem, and Senior Research Fellow Towfiqul Islam Khan, among others.
