'Vested quarter' attempting to sabotage bank recovery efforts: BB governor

A "vested quarter" is trying to sabotage the recovery process of merged banks so that they may eventually return to their previous owners, Bangladesh Bank Governor Ahsan H Mansur has said.

He made the remarks at a press briefing with journalists this afternoon (25 February), shortly after BB officials staged a protest today over recent show-cause notices and transfers of three officials.

The governor said he views the activities of some officials regarding bank mergers and the recovery of weak banks as "conspiracy" and "propaganda".

'Propaganda by officials unacceptable'

Regarding action taken against certain officials, the governor said no BB official has the right to question government policy matters, as it is not within their jurisdiction.

Those who engaged in propaganda have been served show-cause notices and administrative measures have been taken, he added.

Mansur stated that after being served show-cause notices, the officials concerned continued propaganda on social media, prompting their transfer outside Dhaka to maintain control over the situation.

'Institutional discipline must be upheld'

"An institution can survive only if discipline is maintained. It is not acceptable to hold a job but refuse to follow institutional rules," he said.

Talking about officials' protests and calls for his resignation, the governor said, "Resignation is not an issue. I did not come here for a job; I came to serve. If necessary, it would not take me two seconds to resign. However, we will make decisions according to administrative procedures."

'Internal matter, government informed'

The governor said the government has been informed about the ongoing situation at BB.

"This is our internal matter, but we are certainly moving forward in consultation with the government," he stated.

He added that Bangladesh Bank is a strong institution and that ongoing reforms will place weak banks on a stronger footing.

He said the government and the central bank have provided Tk32,000 crore in support to protect the interests of 7.6 million depositors and that depositors' funds are being repaid gradually through this process.

'Bank mergers not a staff issue'

Mansur said, "The merger of five out of seven banks is not an issue for any staff association. It is a matter of government policy and political economy. The decision has been taken to protect the interests of 7.6 million depositors."

He said depositors of these banks had long been unable to withdraw their money and had little prospect of recovery, prompting joint intervention by the government and BB.

According to Mansur, the government has provided Tk20,000 crore, while Bangladesh Bank has given Tk12,000 crore from its Deposit Insurance Fund.

"A total of Tk32,000 crore has been provided. Through this fund, we are gradually repaying depositors. It is not possible to pay everything at once, but we have restored stability," he said.

Special support to weak banks including EXIM Bank

The governor said that although some banks claimed to be in relatively better condition, substantial support was required to sustain them.

"We have provided Tk9,500 crore in liquidity support to EXIM Bank. In addition, Tk1,000 crore for exporters, later Tk876 crore, and recently another Tk1,000 crore have been disbursed. Through these measures, we have been able to bring stability to the banking sector," he said.

Explanation of contractual appointments

Addressing demands raised by officials over contractual recruitment, he said, "Contractual appointments have always existed at Bangladesh Bank and will continue in the future. This is not a new issue. Similar appointments exist in other institutions."

Around Tk500 crore in CSR fund

On BB's corporate social responsibility (CSR) fund, the governor said, "We have approximately Tk450 to Tk500 crore in our CSR fund. This money is being distributed in various sectors including education and health, and it will be increased further."

He added that BB made nearly Tk24,000 crore in profit last year, which was higher than the combined profit of the entire banking sector in the country.