New cenbank governor appointment a 'weak step' by govt: CPD
The government could have avoided significant criticism by appointing a candidate with an unblemished record, says the think tank.
The Centre for Policy Dialogue (CPD) has termed the appointment of the new Bangladesh Bank (BB) governor a "weak step" by the newly elected BNP government, describing the recruitment process as opaque.
The private think tank today (28 February) suggested that the government should have retained the immediate past governor, Ahsan H Mansur, to ensure the continuity of ongoing reforms in the banking and financial sectors.
CPD Research Director Khondaker Golam Moazzem made these observations while responding to questions from journalists during a media briefing, titled "Economic and Social Policy and Administrative Decisions of the New Government: 180 Days and Beyond", held at the CPD office in the capital's Dhanmondi.
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He noted that the government could have avoided significant criticism by appointing a candidate with an unblemished record.
He pointed out that the new governor, Md Mostaqur Rahman, has faced allegations regarding defaulted loans and seeking special privileges, and argued that the government had access to far more suitable human resources for such a critical position.
Praising the role of the former governor in financial sector reforms, Moazzem remarked that previous progress was largely driven by individual initiative.
He emphasised that Mansur was highly skilled and experienced, successfully advancing reforms through sound logic despite pressure from vested groups.
The CPD research director expressed his belief that, for the sake of the financial sector's recovery, the new government should have allowed Mansur to continue his tenure.
Highlighting a systemic flaw, Moazzem pointed out that the country lacks specific selection criteria for appointing a central bank governor, with the only existing requirement being a minimum age of 35.
He urged the government to establish a legal and merit-based framework for such appointments in the future.
Citing the Reserve Bank of India (RBI) as an example, the CPD research director explained that a committee under the Indian finance ministry evaluates candidates based on at least 20 years of experience, institutional leadership capabilities, and academic qualifications such as a Master's or PhD.
CPD recommended that Bangladesh should adopt a similar screening and interview process to create a shortlist for the governorship and other senior state positions.
Additionally, Moazzem raised concerns regarding the government's apparent intent to "deregulate" the capital market.
Given the current fragilities of the domestic financial sector, strict regulation and rigorous monitoring remain essential, he cautioned.
