Appointment of business figure as BB governor may create conflict of interest: Selim Raihan
“The decision to appoint a professional accountant and businessman as governor of Bangladesh Bank naturally raises questions – is the government genuinely sincere about banking sector reforms?” he says.
Professor Selim Raihan has raised concerns over the appointment of a business figure as the new governor of Bangladesh Bank, warning that the decision could give rise to potential "conflict of interest".
In a Facebook post today (25 February), Selim Raihan, executive director of the South Asian Network on Economic Modelling (Sanem), questioned whether the government is truly committed to reforming the banking sector.
"The decision to appoint a professional accountant and businessman as governor of Bangladesh Bank naturally raises questions – is the government genuinely sincere about banking sector reforms?" he wrote.
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Raihan noted that the central bank is not only a monetary policymaking body but also the regulator and supervisor of commercial banks. "Placing someone with a business background in such a key position, can create the risk of conflict of interest."
"A businessman's natural inclination may be to prioritise market and corporate interests, whereas the central bank's primary responsibilities are to control inflation, ensure financial stability and take a strict stance against weak banks," he added.
The economist also pointed out that Bangladesh's banking sector is already facing deep-rooted challenges, including rising non-performing loans, governance deficits and political influence. "In this context, transparency, professional independence and regulatory experience should have been critical considerations in appointing a governor."
"The key question now is whether the new appointment will meet those expectations or set back the reform process. Are we returning to a situation where the interests of influential groups take precedence over central bank independence?" he wrote, urging the government to clarify how the decision aligns with its reform commitments.
Earlier in the day, the Financial Institutions Division of the Ministry of Finance issued a gazette notification appointing Md Mostaqur Rahman FCMA as the new governor of Bangladesh Bank, replacing Ahsan H Mansur.
The appointment marks the first time in the country's history that a businessman has been named governor of the central bank.
