Written by The Banking Post
The appointment of a new governor of Bangladesh Bank has drawn sharp criticism from the Citizens’ Coalition, which raised concerns over both the selection process and the background of the appointee.
In a statement issued on Monday and signed by co-convener Fahim Mashrur, the platform said that while leadership changes in state institutions are expected following the formation of a new government after the 13th national election on February 12, the manner of the central bank chief’s appointment has unsettled sections of civil society.
The coalition described the banking sector as one of the worst-affected areas over the past decade and a half, alleging that political patronage enabled influential business figures to siphon off public savings abroad. It claimed that non-performing loans (NPLs) have now exceeded Tk 6.0 trillion, with the default rate reaching 36.3 per cent.
The group said this is the first time a businessperson has been appointed governor of the central bank, adding that such examples are rare in comparable economies.
According to the statement, the newly appointed governor previously held key positions in influential business bodies linked to the readymade garment, real estate and travel trade sectors, as well as the Dhaka Chamber. In this context, the coalition warned of potential conflicts of interest, noting that central bank policies directly influence multiple business sectors.
It also referred to reports that the governor had rescheduled loans worth over Tk 800 million for his own business enterprise under special consideration. While acknowledging that loan rescheduling may be legally permissible, the coalition questioned whether assuming the top regulatory post while carrying significant loan liabilities meets acceptable ethical standards.
The platform further cited media reports suggesting that the governor had recently served as a member of the ruling party’s election management committee. Given that many lawmakers and cabinet members have business backgrounds — and that some are reportedly loan defaulters — it questioned whether a politically affiliated appointee could ensure independent and professional leadership of the banking system.
The coalition warned that appointing a politically connected businessperson to lead Bangladesh Bank risks turning the central bank into an instrument of vested interests rather than a guardian of national economic priorities.
It urged the government to reconsider the decision, taking into account economic risks and possible conflicts of interest. The platform also called for the formation of an expert search committee and the introduction of a parliamentary hearing process before appointing a new central bank governor.
