Our DNA has been corrupted, not just in the last 15 years: CA's Special Assistant Anisuzzaman

Anisuzzaman Chowdhury, special assistant to the chief adviser, has said the country's institutional and financial culture has long been eroded, stressing that the problem is not limited to the past 15 years.

"Our DNA has been corrupted. It did not happen in the last 15 years, it has been growing year after year," he said at a seminar titled "Unlocking Bangladesh's Bond and Sukuk Markets: Fiscal Space, Infrastructure Delivery and Islamic Money Market Development" jointly organised by the Bangladesh Securities and Exchange Commission (BSEC) and the Dhaka Stock Exchange (DSE) at the DSE Tower today (22 September).

Anisuzzaman Chowdhury emphasised the need for regulatory strengthening and reform, noting that Bangladesh has repeatedly failed to learn from past mistakes. "We made mistakes in creating investment tools to keep funds within the country. We repeated these mistakes again and again," he said.

He stressed the importance of raising public awareness about the difference between sukuk and traditional bonds. "Sukuk generates profit, while bonds pay interest. People must understand this distinction," he said.

We made mistakes in creating investment tools to keep funds within the country

Anisuzzaman Chowdhury, special assistant to the chief adviser

The seminar was presided over by Syeda Zakeerin Bakht Nasir, independent director of the DSE. Finance Adviser Salehuddin Ahmed attended as chief guest, while Bangladesh Bank Governor Ahsan H Mansur, BSEC Chairman Khondoker Rashed Maqsood, FID Secretary Nazma Mobarek, DBA President Saiful Islam, and others were present.

Delivering the keynote presentation, Kabir Hassan, professor at the University of New Orleans, pointed out large-scale misappropriation and corruption in the banking sector, singling out conglomerates such as Beximco and S Alam for weakening the sector. He alleged that S Alam Group was mainly responsible for damaging Islami Bank and the broader Islamic banking system.

Hassan further noted that corporate bonds remain severely underdeveloped in Bangladesh due to the dominance of bank loans, stressing the importance of financial literacy, stronger legal frameworks, and a shift toward long-term financing through bonds and sukuk.

Echoing similar concerns, FID Secretary Nazma Mobarek said Bangladesh is at a critical stage of financial reform and should consider issuing public sector Islamic banks to cater to its Muslim-majority population. She stressed that liquidity challenges faced by Islamic banks stem from the lack of Shariah-compliant instruments and urged greater issuance of sukuk.

Bangladesh Bank Governor Ahsan H Mansur said a joint task force of the central bank and BSEC has been working on bond market development, providing specific recommendations to the government.

He highlighted that globally, $130 trillion worth of bonds have been issued, making it the largest financial market.

"Banks can provide loans for five to six years, but not for more than 10 years. Long-term assets should be financed through bonds. Even saving certificates should be tradable in the secondary market," he said, while calling for reforms in the pension system to ensure its sustainability through long-term investment.

Meanwhile, Finance Adviser Salehuddin Ahmed warned against over-reliance on loans, saying it has contributed to rising default culture. "Private sector participation in bonds is very poor. To meet financial needs, we must raise funds from the capital market rather than through loans and taxes," he said.

He added that the capital market should not be seen as a place for indefinite profit-making, urging greater financial literacy and long-term investment culture. On sukuk, he said, "These instruments must be backed by real, financially viable assets—not fragile ones like derivatives."

Salehuddin also flagged the challenges of pension fund management, as these are public funds under government custody. "If the entire fund is invested, how will the government meet obligations when people need the money?" he questioned.