The central bank authorities need to be more bold and should not kowtow to any external pressure to tackle the current banking sector volatility in the country, former Bangladesh Bank (BB) Governor Dr. Salehuddin Ahmed has said.
At the same time, the central bank needs to be bold and diplomatic in supervising the banking sector; something the BB authorities are currently lacking, the former governor has said.
"No country in the world provides full autonomy to the central bank. But that does not mean that the central bank authority should kowtow to external pressure", Salehuddin said while speaking at the launching ceremony of his book in the capital on Saturday.
"There will always be some external pressures. But the central bank governor has to be very diplomatic. He should know how to overcome such challenges", he said.
"But it is very sad to see that the Bangladesh Bank authority no more takes a strong stance on overseeing the banking sector", the former BB governor claimed.
"But in the prevailing situation of our financial sector, the central bank has to be very bold".
"Otherwise, we may move towards a situation similar to the one faced by the world economy back in 2008", he warned.
Salehuddin, who is also a retired bureaucrat, opined that development process and democracy should go hand in hand in the country.
"These days, we are witnessing more focus on development rather than democracy-similar to what we saw back in the 1960s", Salehuddin said.
"However, democracy and development should ideally go hand in hand", he added.
Speakers at the programme also asked the civil servants of the country not to bow to any political pressure.
"Civil servants need to be more independent-minded", said former caretaker government former advisor A. B. Mirza Azizul Islam.
"That means bureaucrats should not take any unlawful or unethical decision by bowing to any pressure coming from the politicians", said Islam, who himself is a former bureaucrat.
"Similarly, the politicians should also realise that the civil servants have their own way of thinking and decision making".
"The politicians should support and encourage such thinking until and unless it is against the public welfare."
Prime Minister's Economic Adviser Dr. Mashiur Rahman, former caretaker government adviser Dr. Akbar Ali Khan and eminent economist Dr. Wahiduddin Mahmud, among others, also spoke on the occasion.
Bengali business daily Bonik Barta published the book titled 'Governorer Smritikotha' (Memoirs of Governor). Dewan Hanif Mahmud, editor of the business daily, was also present on the occasion.
