After taking on the duty, Abdur Rouf Talukder mentioned his predominant process will likely be to manage inflation. After taking on duty, Raghuram Rajan talked about the identical aim. For this, his predominant weapon was rate of interest. He has described in his guide how he has used rate of interest to manage inflation. The Bangladesh Financial institution new governor, nonetheless, has not mentioned how he’ll deal with inflation. Throughout the former authorities, the businessmen mounted the rate of interest in conferences at five-star accommodations. The brand new governor has to alter that rate of interest. The query greater than whether or not he would be capable of try this, is whether or not he would be capable of shift the coverage selections from the five-star accommodations to the board room of Bangladesh Financial institution.
Sustaining continuity of insurance policies in financial system is essential. However the continuity of unhealthy insurance policies should be shunned. Awami League authorities has been in energy since 2009. Late banker Khondkar Ibrahim Khaled, on document, would name this authorities defaulter-friendly. When Awami League authorities took over in 2009, on the time default loans totalled Tk 220 billion. Now default loans stand at Tk 1130 billion. The insurance policies adopted in these 14 years are in favour of the mortgage defaulters. Beneath varied excuses, they’ve been given all types of scope. However the default has not decreased, it has elevated. It was anticipated the brand new governor would challenge a tricky sign to the defaulters. However the reverse has occurred. After becoming a member of as governor, he issued a round which spared the defaulters vastly. There’s a saying ‘morning reveals the day’. So it appears higher to maintain all expectations from the governor on maintain. The defaulters and influential individuals have gotten their thumbs-up message.
The checklist of scams within the monetary sector of final 14 years may be very lengthy. The scams began with the share market, BASIC Financial institution and Corridor Mark in 2009 and 2010. Later, the monetary scams expanded in so many instructions, this could possibly be a subject of analysis. The shortage of excellent governance has put the banking sector in danger. As a regulator, Bangladesh Financial institution is repeatedly failing to ship its tasks. The central financial institution has helplessly surrendered to the influential folks. The central financial institution was additionally backed banks being occupied by firms in precise title and false names. Many actually do not forget that the previous governor remained in workplace until late evening to approve the takeover of a financial institution. Two high Bangladesh Financial institution officers assisted the controversial PK Halder to take cash from the monetary establishments and to launder it. After altering the regulation and taking on the brand new duty, Fazle Kabir signed the file first concerning the recruitment of former Bangladesh Financial institution deputy governor SK Sur Chowdhury as a director of a financial institution.
However now taking cash from banks is kind of open. Cash is being transferred even after the vault is opened. Earlier, cash has been embezzled by the businesses opened in accordance with the foundations and regulation. Now firms with mere commerce licences are making off with hundreds of crores. Bangladesh Financial institution couldn’t take any powerful motion regardless of figuring out them.
So the independence of the central financial institution that Abdur Rouf Talukder has inherited, is in query. There are additionally varied questions on its position. Pakistan CSP officer Nurul Islam was the primary bureaucrat governor of Bangladesh Financial institution. He was in cost for 11 years at a stretch since 1976. He’s nonetheless now thought-about as among the finest governors. The long run will inform how far the present bureaucrat governor will likely be profitable and revel in his duties as governor.