Wednesday, 28 January, 2026
Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday issued a blunt warning against political interference in the country’s banking system, calling for urgent legal reforms to safeguard institutional independence and prevent future financial irregularities.
Speaking at a roundtable titled “Impact of LDC Graduation on the Banking Sector” in Banani, the governor said insulating the central bank from political pressure is no longer optional but essential to restoring discipline and credibility in the financial sector.
Dr Mansur revealed that a proposal to amend the Bangladesh Bank Order—submitted to the government four months ago—remains stalled, despite its central role in modernising the regulator’s legal and supervisory framework.
“It is unfortunate that the amendment has not yet seen the light of day,” he said. “If we are serious about stopping political meddling in the future, this reform must be approved. A modern banking system cannot function without a strong legal foundation.”
Emphasising the stakes, the governor said only a legally empowered and independent central bank can prevent the recurrence of irregularities that have plagued the sector in recent years, particularly as Bangladesh prepares to graduate from Least Developed Country (LDC) status.
Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition to manage economic challenges, the governor rejected such calls, citing Bangladesh’s strong performance across development indicators.
“We should not compare Bangladesh with countries like Somalia, South Sudan, or Afghanistan. Every development index, including GDP, shows we are far ahead. Staying in the LDC group is not a matter of honor for us anymore. The nation’s goal should be to join the ranks of developing countries like Malaysia or India to gain global respect. We cannot sacrifice long-term gains for minor, short-term benefits.”
The governor also criticised the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for past inaction during episodes of money laundering and the controversial ‘6–9 percent’ interest rate cap.
“Business organisations have behaved like puppets in the past. They cheered for the 6–9 percent interest rate and remained silent when money was being siphoned out of the country. Democracy can never be strengthened if such behavior continues,” Dr Mansur said.
During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, expressed concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have already resulted in 1.2 million job losses, with another 1.2 million potentially at risk in the next six months.
Dr Mansur acknowledged that interest rates are high but attributed the situation to $20 billion being siphoned out of the country, which contributed to a rise in non-performing loans (NPLs).
He said once governance improves and inflation is brought under control, interest rates are expected to ease.
The International Chamber of Commerce, Bangladesh (ICCB) organised the event, with its president Mahbubur Rahman moderating and economic analysts, policymakers and business leaders in attendance.
Comments
Bangladesh Bank Governor Dr Ahsan H Mansur on Tuesday issued a blunt warning against political interference in the country’s banking system, calling for urgent legal reforms to safeguard institutional independence and prevent future financial irregularities.
Speaking at a roundtable titled “Impact of LDC Graduation on the Banking Sector” in Banani, the governor said insulating the central bank from political pressure is no longer optional but essential to restoring discipline and credibility in the financial sector.
Dr Mansur revealed that a proposal to amend the Bangladesh Bank Order—submitted to the government four months ago—remains stalled, despite its central role in modernising the regulator’s legal and supervisory framework.
“It is unfortunate that the amendment has not yet seen the light of day,” he said. “If we are serious about stopping political meddling in the future, this reform must be approved. A modern banking system cannot function without a strong legal foundation.”
Emphasising the stakes, the governor said only a legally empowered and independent central bank can prevent the recurrence of irregularities that have plagued the sector in recent years, particularly as Bangladesh prepares to graduate from Least Developed Country (LDC) status.
Dr Mansur also addressed concerns about Bangladesh’s upcoming graduation from Least Developed Country (LDC) status. While some business leaders have suggested delaying the transition to manage economic challenges, the governor rejected such calls, citing Bangladesh’s strong performance across development indicators.
“We should not compare Bangladesh with countries like Somalia, South Sudan, or Afghanistan. Every development index, including GDP, shows we are far ahead. Staying in the LDC group is not a matter of honor for us anymore. The nation’s goal should be to join the ranks of developing countries like Malaysia or India to gain global respect. We cannot sacrifice long-term gains for minor, short-term benefits.”
The governor also criticised the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and other trade bodies for past inaction during episodes of money laundering and the controversial ‘6–9 percent’ interest rate cap.
“Business organisations have behaved like puppets in the past. They cheered for the 6–9 percent interest rate and remained silent when money was being siphoned out of the country. Democracy can never be strengthened if such behavior continues,” Dr Mansur said.
During the discussion, AK Azad, Vice President of ICC Bangladesh and Chairman of Ha-Meem Group, expressed concerns over the country’s current contractionary monetary policy, claiming that rising interest rates have already resulted in 1.2 million job losses, with another 1.2 million potentially at risk in the next six months.
Dr Mansur acknowledged that interest rates are high but attributed the situation to $20 billion being siphoned out of the country, which contributed to a rise in non-performing loans (NPLs).
He said once governance improves and inflation is brought under control, interest rates are expected to ease.
The International Chamber of Commerce, Bangladesh (ICCB) organised the event, with its president Mahbubur Rahman moderating and economic analysts, policymakers and business leaders in attendance.
Comments
