POBNEWS24, Dhaka Aug 13, 2024 : In Bangladesh, new instability has been created in the banking sector of the country which is in crisis. After the fall of the government, bank after bank protests turned violent. The depositors are worried about this ongoing movement for various demands including the change in the ownership of the bank. Many savers are withdrawing money from banks out of fear. Due to the risk of law and order situation, not getting money at ATM booth, the cash withdrawal limit has been fixed at two lakh rupees, so the businessmen are in trouble to meet the daily operating expenses. If the situation does not improve quickly, the concerned people fear that the crisis will increase.
Since the fall of the government, the movement has started in banks for the change of ownership and the demands of the deprived. A clash took place between two groups of Islami Bank officials. At least six people were shot dead in front of the bank’s head office on Sunday. Since the fall of the government, the officials of Islami Bank have demanded to expel the ‘looters’ from the bank by restructuring the board of the bank.
The old employees of the bank also held a protest in front of the head office on Monday. As a result, none of the officers appointed after 2017 could enter the bank. Besides, they demanded justice for Sunday’s shooting incident.
A group of people with weapons did a drill in front of the head office of Social Islami Bank. Employees and customers of the bank are spending time in fear. IFIC Bank’s chairman Salman F Rahman and his son, including all the directors of Beximco, have protested to demand the resignation of the current and dismissed officers and employees of the bank.
A section of shareholders also formed a human chain against the current board of UCB. There were protests in some private sector banks including IFIC, ONE, Bangladesh Commerce. Protests have also taken place in state-owned banks over privileges and demands.
Those concerned say that agitations are not desirable in a sensitive institution like a bank. Reasonable claims should be settled expeditiously in accordance with the prevailing norms of the bank. Otherwise, the crisis will be prolonged if the depositors lose confidence in the banks.
Mashroor Riaz, Chairman of Policy Exchange, a private research institute, said, “There is chaos and protest in the bank. In the last few years, one side of some bank has monopolized the share holders of all other banks. Because of that, there have been many irregularities. It is natural that there will be protests in the places where such incidents have taken place. But the protest should be at the negotiating table and not at the door of the bank. It should be in a systematic manner. Employees should be given a proper platform to raise grievances. Those who are protesting, expressing their anger may have legitimate issues. There is a need to change the management and board by starting these discussions under the leadership of the relevant officials of the central bank.
Mashroor Riaz said, some people are unnecessarily worried about the post-coup situation. Problems need to be solved and done quickly. The amount of money withdrawn from the bank by pouring cannot be limited to two lakh rupees. This will result in transaction loss. Gradually it should also be increased to a logical place. If these disturbances in the bank go on in the open, then there may be a crisis of confidence among the foreign stake holders.
The executive director of research organization PRI. Ahsan H. Mansoor feels that the unrest that has been created in the past few days, including protests, agitations, taking control over the ownership of various banks, needs to be intervened on an urgent basis. It must be ensured that no one can leave the bank with money at this moment.
This economist said, the entire banking sector cannot be reformed at once. Some work will take time. The administrative structure of the central bank needs to be restructured quickly.
Mohammad Nurul Amin, the former chairman of Association of Bankers Bangladesh (ABB), an association of private bank executives, said, “There is no reason for the depositors to fear if the health of the bank is not affected by the high level of non-performing loans and other reasons.” Islamic banks have been borrowing money from Bangladesh Bank for a long time. If the condition of any of them is worse then Bangladesh Bank has to think now how to protect the depositors. Once depositors’ confidence is lost, it will take a long time to restore it.’
Businessmen in cash crunch
Due to the lack of cash, the businessmen of the country are in a kind of crisis. The central bank of the country has fixed the daily cash withdrawal limit from the bank. Last Saturday, the banks were told that not more than two lakh taka can be withdrawn from each account daily. Before raising this amount, the central bank had last Thursday limited daily cash withdrawals to Tk 1 lakh.
Traders say they will find themselves in a tougher situation if the cash crunch continues and the restrictions continue next week.
Executive President of BKMEA Mohammad Hatem said, “We are facing a lot of problems under the guidance of the Central Bank. Because a company cannot be paid with just two lakh taka. So we contacted the central bank and took permission to withdraw more than two lakh rupees to pay the salary. Several organizations have been able to pay salaries for the month of July by withdrawing money from the bank. But the whole problem has not been solved yet.
A limit has been imposed on bank withdrawals (two lakhs) and also ATM booths are not available. As a result, people are in trouble. How long will this situation last? Bangladesh Bank Governor Salehuddin Ahmed said in response to the question of journalists, “There is no money, it is not.” This is done due to insecurity. Bankers take money from Bangladesh Bank in big trunks every day. But now it is dangerous to transport that money by road. ATM booths were also attacked, for which there was apprehension. The Finance Secretary will look into the matter expeditiously.
However, no one can say how many days this situation will change. The civil society of the country wants to be very concerned about how much Yunus’s government can handle. Kazi Farooq Ahmed, the former executive director of an NGO called Prashika, has also commented that the way Sheikh Hasina strengthened the fragile economy by dealing with a country devastated by Corona is the death.
