Defining what constitutes a family, wilful defaulter important
The implementation of laws is crucial in Bangladesh. Despite the existence of laws, they are often not properly implemented – as seen in banks failing to recognise bad debts according to current rules.
I welcome the recent step to reduce the number of directors from a family to three as having four directors from a family can lead to domination over the bank's board and biased decision-making in favour of the family concerned.
Banks should not be run by families as directors and owners are merely trustees of depositors' money.
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Imposing only travel bans or small restrictions on wilful defaulters is insufficient.
Wilful defaulters are criminals and appropriate action should be taken against them.
It is important to define what constitutes a family or a wilful defaulter.
The vital role of banks and the central bank in implementing amended laws is very important. Without their active involvement, no significant change can be achieved.
Muhammad A (Rumee) Ali is former deputy governor, Bangladesh Bank
TBS Deputy Editor Sajjadur Rahman spoke to Muhammad A (Rumee) Ali over the phone
