Banking sector reform impossible without political change: BB governor

Echoing the views of Finance Adviser Salehuddin Ahmed, Bangladesh Bank (BB) Governor Ahsan H Mansur has said it is not possible to strengthen the country’s banking sector by adopting any policies without political change.

No policy will work effectively in strengthening the banking sector except the qualitative political change in the country, said the BB governor while addressing a press conference at his office in Dhaka on Monday.

Earlier on Saturday, Finance Adviser Salehuddin Ahmed categorically said that the reform in the banking sector is not possible for the interim government and an elected government will do it after assuming power.

During the press conference organised by the BB, Mansur said the Bangladesh Bank has taken a time-befitting initiative to ensure fundamental change to the supervisory framework of the country’s banking sector.

The object of the initiative is to make the supervision system skilled, effective and modern, he said, adding that the risk-based supervision method has been adopted, which will work from 1 January 2026.

The piloting activities of the risk-based supervision have already been completed with 20 banks and it will be introduced in 61 banks by 31 December, he said.

A total of 12 supervision committees will be formed at all 12 divisions and they will oversee the overall activities in the country’s banking sector, said the BB governor.