Finance Minister Amir Khusru Mahmud Chowdhury has underscored the urgent need to restore public confidence in Bangladesh’s financial sector through strengthened transparency, accountability, and institutional integrity. He warned that rebuilding trust in governance and credible financial reporting has become one of the country’s most pressing economic challenges.
He made these remarks while addressing a national conference on financial accounting and reporting held on Wednesday at the Pan Pacific Sonargaon Dhaka. The event, themed “Reliable Financial Reporting: What Truly Matters,” was organised by the Financial Reporting Council in collaboration with the Institute of Chartered Accountants of Bangladesh and the Institute of Cost and Management Accountants of Bangladesh.
The minister stated that regulatory and supervisory bodies in the financial system have long suffered from weakened effectiveness, resulting in systemic shortcomings in auditing practices, financial disclosure, and oversight mechanisms. He noted that past governance failures have significantly undermined key financial institutions, leaving the economy at a critical juncture.
Expressing concern over irregularities in the banking and capital markets, he observed that some institutions have been able to enter the market by presenting misleading or falsified financial statements. This, he said, has created an uneven playing field, disadvantaging genuinely strong and compliant firms.
He further highlighted structural weaknesses in asset valuation and market-based pricing mechanisms, which have contributed to capital shortages in both the banking and private sectors. The issues of non-performing loans, capital flight, and alleged collusion between bank owners and management were also cited as major factors deepening the crisis.
According to him, depositors’ funds have too often been misused for private gain, undermining the core principles of financial discipline. He stressed that restoring order in the sector requires strict enforcement of rules and an end to such malpractice.
Calling for stronger professional ethics, the minister urged accountants and auditors to exercise rigorous self-regulation. He emphasised that the credibility of financial reporting ultimately depends on the integrity of professionals responsible for preparing and verifying accounts.
A comparative overview of the financial sector situation is presented below:
| Issue | Current Situation | Desired Outcome |
|---|---|---|
| Financial reporting | Weak controls and irregularities | Transparent and reliable system |
| Banking governance | Conflicts of interest and malpractice | Professional and accountable management |
| Regulatory bodies | Partially ineffective oversight | Strong and efficient supervision |
| Investment climate | Lack of investor confidence | Investment-friendly environment |
The minister also referred to a past initiative where delegating responsibilities to a professional private entity yielded positive results, arguing that effective supervision combined with professionalism can make self-regulation viable.
On foreign investment prospects, he noted that major global institutions, including JPMorgan Chase and investment groups based in London and Hong Kong, have shown interest in Bangladesh. However, he cautioned that without internationally compliant and credible audited financial statements, attracting sustained foreign investment would remain difficult.
He further warned that unreliable financial disclosures would erode investor confidence and stall capital inflows. Long-term structural reform, he said, must take precedence over short-term interests to build a sustainable economic framework.
The conference was also attended by Special Guest Professor Rashed Al Mahmud Titumir, while Finance Secretary Dr Md Khairuzzaman Majumder presided over the session. The keynote paper was presented by Financial Reporting Council Chairman Dr Md Sajjad Hossain Bhuiyan. Senior government officials, accountants, auditors, valuers, actuaries, and business leaders participated in discussions focused on improving reporting standards, aligning with international norms, and strengthening external audit mechanisms.