Bangladesh will need to spend Tk60,000 crore annually for the next five to eight years to repair the damage to its banking sector, with taxpayers set to shoulder the cost, Bangladesh Bank Governor Md Mostakur Rahman said on Saturday.
The central bank submitted a draft proposal to the government last week seeking budgetary support to recover losses caused by large-scale financial irregularities in the banking sector, he said.
“The money that was looted belonged to the people. Now the people themselves have to pay it back,” the governor said at a ONE Bank event at United International University (UIU) in Dhaka.
He made the remarks while responding to a student’s question about difficulties withdrawing money from a bank branch and ATM.
Rahman said he found, after taking office, that nearly one-third of banks’ money had been taken away through what he described as large-scale looting.
The central bank is now providing funds to troubled banks to help them meet customers’ withdrawal demands, but the support is ultimately coming from public money, he said.
The governor highlighted the opportunity cost of the proposed bailout, saying Tk60,000 crore could otherwise be used to support two crore families annually through family cards or build two Padma bridges.
“Someone looted the money, but you and I are now paying the penalty,” he said, calling for greater public awareness of the consequences of financial misconduct.
Loan defaulters face legal action from 2027
Rahman said the central bank had given full support to the newly merged Sammilito Islami Bank, which was now able to meet all customer withdrawal requests.
He also said National Bank would be able to pay all customers’ claims from 15 October.
The central bank has given banks and loan defaulters until 31 December to settle disputes through negotiations. Those failing to reach a settlement will face legal action from 2027, he said.
The Bangladesh Bank is working to amend two laws and tighten anti-money laundering regulations to strengthen enforcement, he added.
Bangla QR seen lifting tax revenue
The governor said nationwide adoption of Bangla QR payments could help the government achieve its higher revenue collection target for the 2026–27 fiscal year.
The government has raised the revenue target by Tk2 lakh crore compared with the previous target, he said.
Bangladesh’s tax-to-GDP ratio remains below 7%, partly because many businesses do not properly record their transactions, according to Rahman.
Full implementation of Bangla QR could bring more transactions into formal accounting systems and push the ratio above 10%, he said.
Addressing concerns about the misuse of QR codes for suspicious transactions, the governor said illicit activity could also occur through mobile financial services and conventional banking channels.
The central bank has mechanisms to identify suspicious transactions across these platforms, he added.
ONE Bank launches QR payments at UIU
ONE Bank launched its Bangla QR payment service at the UIU campus to expand access to convenient, interoperable digital payments.
The service is intended to make payments easier for students while familiarising them with digital financial services.
ONE Bank Managing Director Muhit Rahman said digital transformation would be meaningful only if it made everyday financial services easier and more accessible.
UIU Vice-Chancellor Md Abul Kashem Mia also attended the event.