Secretary General lambasts at the proposed ‘Deposit Protection Act’; urges government to eliminate irregularities from banking sector
Secretary General of Bangladesh Jamaat-e-Islami and former lawmaker Professor Mia Golam Porwar has issued the following statement on 23 February, 2020 expressing deep concern over the Bangladesh Bank proposed ‘Deposit Protection Act’.
“A severe catastrophe has been created in the banking sector under the incumbent regime. The government has taken thousands of crores of taka from different banks. The directors also conducted a massive looting as per their whims. Due to such chaotic role of the government and the bank directors, a crisis of confidence and transparency has become intense in this sector. People are becoming reluctant to deposit money in the banks. Bangladesh Bank also failed to nurture the banking sector.
According to the proposed act, if any bank or financial institution shuts down, the depositor will not get their entire deposited money. Whatever deposit a depositor has in one or more accounts, s/he will only get Tk 1,00,000 after winding up," a section in the draft said. Such a proposal is really worrisome. Depositors are also in severe tension due to existence of such provision.
Because of the government’s backing and the perverse activities of the greedy bank officials and staffs, the whole banking sector is suffering from crisis, deadlock, corruption and irregularities. Banks are giving loan abnormally. The amount of default loan has already become several thousand crores. Resultantly, the banking and financial sector is at the verge of collapse. Several banks and financial institutions are at risk.
Under the circumstances, Bangladesh Bank proposed this controversial deposit protection act, which will demotivate the depositors massively. They may withdraw their money. The banks also may face liquidity crisis. Instead of eliminating the existing irregularities, Bangladesh Bank has taken initiative to ruin the deposits of the valued clients.
In this backdrop, I am urging the concerned authorities to prevent the corruption and irregularities of the baking sector and also to take initiative so that the clients, on their request, can get back their entire deposit from the relevant banks and financial institutions.