Bangladesh Bank governor Ahsan H Mansur on Thursday expressed disappointment over bureaucracy, saying that bureaucrats were hesitant about reforms.
He made the observation as he was addressing a seminar on 鈥楳acroeconomic challenge and the banking reform鈥�, organised by the Economic Reporters鈥� Forum in the capital Dhaka.
Mentioning various steps taken as part of the reform on the macroeconomic front by the central bank to contain inflation, recover stolen money, stabilise the exchange rate, deal with problem banks and improve assets quality, the BB governor expressed disappointment over the revenue sector reform.
鈥楤ureaucrats are hesitant,鈥� he said, adding that the separation of tax policy from administration should be expatiated.
Tax reform is essential as the government has hit the wall, he said.
Noting high expectation among people for the interim government to deliver against the backdrop of students-led uprising that ousted the Awami League regime, Centre for Policy Dialogue distinguished fellow Mustafizur Rahman said that nothing would bring benefits unless revenue sector reform was accomplished.
He said that a new dynamism in the revenue sector was imperative.
He also said that people expected tangible progress in recovering the assets stolen by oligarchs linked to the ousted AL regime.
Mansur said that bringing back the stolen money would take four to five years.
Narrating various steps taken on the much-talked about issue, the BB governor said that he expected new elected government would follow up the matter.
He hoped that the banking sector reforms and the reform in the Bangladesh Bank were expected to be intensified soon with the aim of curbing political influences.
He added that recommendations over ensuring autonomy of the BB would be placed soon before the chief adviser while a draft of 鈥楾he Bank Resolution Ordinance, 2025鈥� was prepared to enable BB to take over crisis-hit banks, transfer their assets, and hand over operations to a 鈥榖ridge bank鈥�.
Without disclosing the name, the BB governor said that tough actions would have to be taken against the bank that gave 87 per cent of its loan to a single family.
Highlighting the importance of confidence for the banking sector, he said that Islami Bank Bangladesh had already staged a turnaround because of high deposit rate.
He said that the overall deposit rate should increase in banks, especially in the problem-hit banks for their recovery.