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Finance Minister Amir Khasru Mahmud Chowdhury has said many banks in Bangladesh are facing a “serious capital deficit” caused by years of money laundering, loan irregularities and collusion between bank boards and management.

Speaking at the Financial Accounting and Reporting (FAR) Summit 2026 in Dhaka on Wednesday, the minister said financial discipline has deteriorated sharply across the banking and corporate sectors, creating major risks for the economy.

The summit was jointly organised by the Financial Reporting Council Bangladesh, the Institute of Chartered Accountants of Bangladesh and the Institute of Cost and Management Accountants of Bangladesh.

Addressing auditors and accountants, the minister said the country’s banking sector and several previously successful companies are now struggling with large capital shortages.

He blamed the crisis on money laundering, manipulation of financial statements and insider collusion, where board members allegedly siphoned off funds using their control over banks.

“The kind of financial indiscipline that has taken hold in Bangladesh is alarming — not just in the banking sector but across the board,” he said.

The minister also criticised the Financial Reporting Council for failing to detect or reflect major financial irregularities in corporate accounts despite being established more than a decade ago.

“Money has been siphoned out of banks, and companies have entered the stock market through false representation,” he said.

According to him, the lack of transparency and accountability is discouraging fundamentally strong companies from entering the capital market.

“When this kind of picture emerges, fundamentally good companies that can offer quality shares find no room in such a market. Nobody wants to compete in an uneven competition,” he added.

Bangladesh Garment Manufacturers and Exporters Association President Mahmud Hasan Khan Babu also highlighted the consequences of weak financial reporting practices in the apparel sector.

He said the number of registered garment exporters has fallen sharply from 7,200 to around 2,500, largely because many businesses failed to maintain proper accounting and reporting standards.

“These businesses shut down because they lacked proper accounting and financial reporting,” he said.

He warned that companies relying on inflated or fabricated financial reports may survive temporarily, but eventually face collapse.

“Sooner or later, the business will collapse,” he said, adding that international buyers now increasingly prefer exporters with transparent financial records.