No Bonus for Bank Officials if Banks Face Losses: Governor Ahsan

ছবিঃ সংগৃহীত

News Desk: Bangladesh Bank Governor Ahsan H. Mansur has stated that if any bank operates at a loss, its officials will not be entitled to bonuses.

Speaking virtually at an event held at a hotel in Dhaka on Saturday, the Governor highlighted several key measures regarding the banking sector.

He said that if a bank’s capital falls below 10 percent and it incurs provisioning losses, it will not be allowed to distribute dividends or bonuses. Loans that remain unpaid for three months will be classified as non-performing loans (NPLs).

Governor Mansur explained that efforts are underway to stabilize Bangladesh’s economy, which has faced uncertainty and instability in recent years. “We are working to bring the economy back on track, and progress has been made, at least partially,” he added.

He noted that the use of hundi (illegal money transfer channels) has decreased significantly. Previously, about 30 percent of remittance earnings leaked through hundi. While import volumes have not declined, their values have dropped, reducing costs. Illegal money laundering through over-invoicing has also decreased, which he attributed to improved governance. As a result, foreign exchange reserves have increased.

The Governor further said that in the past month, the central bank purchased USD 1 billion from the market without pushing up the exchange rate. “Although there is no dollar shortage, liquidity shortages in local currency remain,” he said. Inflation control is a priority, but it requires time. Rising rice prices in August slightly pushed inflation upward, but efforts continue to bring it below 5 percent.

He also mentioned that, according to the June report, default loans could rise to around 30 percent. Starting Sunday, discussions will begin with the government on merging five banks. “Within one to two years, the situation will improve. This will be better for both officials and depositors,” he assured.