Transparency International Bangladesh (TIB) has voiced deep concern regarding the recent appointment of the new Governor of Bangladesh Bank, questioning whether the appointee can operate independently, free from corporate interests and potential conflicts of interest.
In a statement issued on Thursday, 26 February, TIB highlighted potential risks associated with the Governor’s professional background. Dr Iftekharuzzaman, Executive Director of TIB, stated: “The new Governor’s experience in the banking sector primarily involves debt-laden businesses, non-performing loans, and debt rescheduling processes. At the same time, he has connections with the ready-made garments sector, the real estate industry, and influential business lobbies. This raises serious questions about the extent to which he can exercise independent judgment in overseeing the central bank.”
Dr Iftekharuzzaman further noted that nearly 60 per cent of Members of Parliament and 62 per cent of Cabinet members have business backgrounds, many of whom are themselves indebted. “Appointing a debt-laden businessman with experience in debt rescheduling and close ties to policy-influencing business lobbies to the top position at the central bank carries significant risks that the government must carefully consider,” he said.
According to TIB, this marks the first time in Bangladesh’s history that a businessman has been appointed as Governor of the central bank. The organisation emphasised that the message this appointment sends—both nationally and internationally—should be taken seriously by the government. Questions have also arisen about the appropriateness of appointing a member of the ruling party’s election committee to such a key financial position.
TIB’s analysis highlights that, in the past, the banking sector has been vulnerable to political and elite influence, leading to increases in non-performing loans and money laundering. In the current economic context, where attracting foreign investment and establishing financial governance are critical, doubts remain about how effective the new Governor will be. Challenges include controlling inflation, maintaining financial stability, and taking punitive measures against weak banks—tasks that require genuine autonomy.
TIB stresses that, in line with public expectations of the current government, independent and transparent leadership at Bangladesh Bank is crucial. The real test now lies in whether the new Governor can operate beyond governmental and business interests.
Key Information on the New Governor of Bangladesh Bank
| Subject | Details | Remarks |
|---|---|---|
| Name | Not disclosed | Business background |
| Previous Experience | Debt rescheduling, non-performing loans, debt-laden processes | Direct involvement in banking sector |
| Industries/Connections | Ready-made garments, real estate | Linked to influential business lobbies |
| Political Affiliation | Member of ruling party’s election committee | Potential conflict of interest |
| Historical Significance | First businessman appointed as Governor | Important national and international message |
In conclusion, TIB maintains that the new Governor’s independence, competence, and transparency are now under scrutiny, with the stability and governance of the banking sector hanging in the balance.