Wahiduddin said private banks had once been brought up to international standards, but the banking sector was first undermined by non-performing loans.
Planning Adviser Wahiduddin Mahmud. Sketch: TBS
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Planning Adviser Wahiduddin Mahmud. Sketch: TBS
Wahiduddin Mahmud, an economist and former planning and education adviser in an interim government, has questioned whether new bank loans are reaching genuine businesses and whether there are adequate safeguards to ensure the funds are used properly.
Speaking at the 11th Annual Banking Conference 2026 today (October 28), he questioned whether safeguards are in place to ensure that new bank loans are used properly and that past instances of fund misappropriation are not repeated.
“New loans are being disbursed, but what guarantees are there that they are being used properly? Who can ensure that the misuse of bank loans, as seen in the past, is not happening again?” he said.
Wahiduddin said private banks had once been brought up to international standards, but the banking sector was first undermined by non-performing loans.
He said various relaxations are now being introduced in the banking sector, warning that if loans do not reach genuine businesses and are instead misappropriated, the sector may see a repeat of past abuses.
He observed that private banks are gradually improving, while state-owned banks are in an even worse condition.
“State-owned banks are entirely politically influenced. Every government has enabled various forms of abuse of these banks in the name of providing opportunities,” he said.
Wahiduddin said the Bangladesh Bank alone cannot resolve the problems facing state-owned banks, adding that the government itself must take responsibility for addressing them.
He also stressed that people working in the corporate and banking sectors must maintain a minimum standard of ethics.
“Regardless of how many laws are in place, no country can perform well without ethics,” he said.
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