Better to close weak banks rather than merge them: BTMA president

It would be better to close weak banks rather than merge them, Shawkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), said today (10 August).

"Why pour money into saving dead banks? Why give money to the thieves? Return the money to those banks' depositors instead. No matter what changes you make, the ownership of these banks will remain the same — they'll come back eventually. 

"These banks should be shut down. To preserve employment, give a few branches to healthy banks," Shawkat said while speaking in a dialogue titled "365 Days of the Interim Government" organised by the Centre for Policy Dialogue (CPD).

Bankers, businessmen, and former bureaucrats attending the dialogue stressed that Bangladesh Bank needs to clarify exactly what it intends to do regarding bank consolidation or mergers. 

Mahmuduzzaman Khan Babu, President of the BGMEA, said: "You say you will merge five banks — you should have announced it when you were actually doing it. Now, LCs can't be opened in those banks, and their RMG-sector clients are in trouble."

Nurul Amin, Chairman of Global Islami Bank, said: "A meeting will be called within 15 days on mergers. Weak banks will be asked if they can survive on their own or if they are ready to merge. All banks will not be merged at once."

He said there are real reasons behind the rise in defaulted loans and that Bangladesh Bank had previously failed to fully perform its regulatory role. "Now there is some fair play and no statistical corruption — but more clarity on mergers is needed."

Former Finance Secretary Mohammad Muslim Chowdhury said: " Now there's talk of bank mergers, with the government planning to invest. If this money comes not from revenue but from Bangladesh Bank injecting funds, it will create new problems."

The discussion was held at the Lakeshore Hotel in the capital, with Brigadier General (Retd) Sakhawat Hossain, adviser to the labour and shipping ministries, as the chief guest. The session was chaired by CPD Distinguished Fellow Professor Mustafizur Rahman.

BNP Organising Secretary Shama Obaid said the economy cannot be fixed without fixing politics. "First, we need good governance, transparency, and accountability. Many major investors and job creators have joined politics — but it would be better if businesspeople stayed out of politics."

Barrister Fuad, General Secretary of AB Party, said: "Even the strongest government in the country's history has failed to take certain decisions. The bureaucracy hasn't been addressed properly. The economy should be the top priority, and decisions must be made on how to hold credible elections."

Rasheda K Choudhury, CPD Board of Trustees member, said: "Education has not received priority. The needs of the lower and poor classes have been lost in reforms. To reduce inequality, education and healthcare must be prioritised. Quotas should not be kept in scholarship systems. Policy-making must consider everyone."

Dr M Tamim, Vice Chancellor of Independent University, Bangladesh, said: "During the last government's term, the energy and power sectors were most discussed, often in connection with corruption — but no clear decisions were made. No long-term plans were adopted."

He noted that even after clearing arrears in the power and energy sector, subsidies were not reduced, and old contracts were not reviewed. Gas shortages persist — demand is 3,800 cubic feet, but supply is only 2,800, causing load-shedding in rural areas.

"Our power generation capacity is 27,000 MW, but 4,000 MW sits idle for maintenance. We need to decide now how much power will come from which fuel source. Otherwise, there's danger ahead. Some old plants are kept just to inflate capacity figures. The government has missed its chance to make reforms."

Ruhin Hossain Prince, General Secretary of the Communist Party of Bangladesh, said: "People want relief — but in 365 days, real relief has not been delivered. Without ending economic criminalisation, there will be no relief. The poor are suffering; religious minorities are unsafe. Political stability is needed, as well as a discussion on minimum wages for workers. Elected representatives of the people must be brought in. The dreams of the Liberation War have not been fulfilled — but they have not ended. They must be realised."

Prof SM Amanullah, Vice Chancellor of the National University (NU), said: "We miss quality education. The NU has 4 million students, but none are truly 'students' — they are all 'examinees.' NU accounts for 70% of higher education, but whether this model is logical should be reconsidered."

He said that during a recent visit to a college, he saw students using AI to take exams while the principal was having tea. NU's education system and syllabus have no connection with industry, yet no one speaks about it.

"We are in the fourth industrial revolution, but our syllabus isn't even from the first. Labs exist in colleges but are unused — yet students still get full practical marks. There's disorder in college management and governance, with moral decay. Education sector reform is needed."

Small business representative Tanvir Md Dipu said: "Extortion has increased. The government's success rate is 50%. Insecurity has grown sharply — businesspeople are afraid to return home at night."

Jimmy Amir, a member of the Media Reform Commission, said: "Alongside other reforms, journalists' economic security must be ensured, as well as their safety."

Rashed Khan, General Secretary of Gono Odhikar Parishad, said: "The government has taken no action against the Awami League's economic system — instead, it's protecting those businessmen who committed irregularities during their rule. In the past year, political stability has not been achieved. Without it in the next six or seven months, free, fair, and impartial elections will not be possible."