It is highly 'immoral and unethical' to let a few greedy and politically connected ultra-rich people to siphon off depositors' money, which is ultimately refilled with taxpayers' money, noted economist Dr Sadiq Ahmed said on Monday.
"It is highly immoral and unethical to let a few greedy and politically connected ultra-rich people to siphon off depositors' money, and then fill the gap with taxpayers' money, thereby depriving poor people of vital services."
The Policy Research Institute (PRI) vice chairman also noted that the banking sector has progressed a lot, and despite considerable progress the country still has numerous poor and needy people.
Speaking at the 20th Nurul Matin Memorial Lecture on 'Ethics in Banking', he said despite progress of the banking sector, dark clouds are looming large over banking governance, and growing non-performing loans must be tackled swiftly and firmly.
The Bangladesh Institute of Bank Management (BIBM) organised the lecture.
Dr Ahmed opined that reforms in the banking sector have to be done through sustainable solutions and not through cosmetic interventions.
"For this, a strong partnership between the Ministry of Finance and the Bangladesh Bank (BB) is essential."
The central bank must adopt a swift programme to stem the flow of bad loans through stronger supervision and disciplinary actions against the poor-functioning banks, he added.
In a video message, former finance minister A M A Muhith said ethics is the key in the banking sector.
"There is (something) more than laws in banking, it is ethics," he opined.
BB Governor Fazle Kabir presided over the session, while BIBM Director General Akhtaruzzaman offered the welcome address.
A number of members of the BB board of directors, former governors, deputy governors, and senior bankers attended the discussion, among others.
The BIBM initiated the memorial lecture programme in 1997 to boost ethics in banking.
