Investors' Woes In 5 Banks' Mergers: Experts for securing interests of small stakeholders

Bankers and financial-sector experts make a strong plea that interests of the small shareholders should be protected in the merger of five Islamic banks as the regulatory declaration nullifying their net asset value for past plunders beggared them.

The central bank had failed to regulate all the commercial banks properly with the result of the banking sector falling in vulnerabilities that impacted the small shareholders and depositors, they said at a graduation ceremony organised Friday by Bangladesh Institute of Bank Management (BIBM).

Bankers and experts also feel there is no alternative but to confirm "absolute autonomy" of the Bangladesh Bank (BB) for ensuring financial governance, the growth of the financial sector as well as of the economy.

"How a company can take over 5 Islamic banks! Where the central bank was standing then?" questions Dr MA Baqui Khalily, Professor at the University of Asia Pacific.

"Why the small shareholders will lose their investment and what is the role of the central bank to protect their interests? He goes on slating the regulatory role.

Mohammad Ali, MD of Pubali Bank, emphasizes that bankers should not allow political pressures In approving loans, as allegations of political oligarchy holding sway over bank operations in the past figured high.

"I know that almost every MD faced pressure from outside, and even from the internal part," the private banker told the meet.

Deputy Governor of Bangladesh Bank Nurun Nahar says the commercial banks which have not obeyed the different circulars and guidelines of the central bank have fallen into trouble.

"The central bank's risk-based supervision has now under single window which will ensure governance," she told the audience.

AKM Rezaul Karim, BIBM Director, Mosleh Uddin Ahmed, MD of Shahjalal Islami Bank, and Kazi Md Wahidul Islam, MD of Rupali Bank, also spoke on the occasion in the wake of such banks going bust and remedial actions in reforms.

Bangladesh Institute of Bank Management awarded certificate to the graduate bankers who successfully completed all the requirements of the respective certification course. Nurun Nahar, also Chair of the BIBM Executive Committee, was present at the event as chief guest. Professor Dr. M. A. Baqui Khalily, Dean, School of Business, the University of Asia Pacific of Dhaka, delivered the ceremonial lecture.

The programme was chaired by S. M. Abdul Hakim, Director-General of BIBM. Dr. Mohammad Tazul Islam, Director (Certification) of BIBM, delivered welcome.