Dr. Zahid Hussain speaks to DOT : The country’s banking sector has been in a delicate situation. This has been attributed to the rise in default loans, according to a report published by international ratings agency Moody’s. The presence of this risk in the banking sector would make foreign investors hesitant. As a result, foreign investment would fall.
Even the Dream Indicator and our ranking in the World Economic Forum’s Global Competitiveness Index also hint that Bangladesh is pretty low in international ranking. So this newly published Moody report will not shed a supportive light on Bangladesh’s economy.
Improving the banking sector in order to strengthen the foundation of the nation’s economy is a big challenge. Strict legal measures have to be taken against loan defaulters. Banks have to play more transparent roles in handing out loans. Only the integrity of the authorities will be able to bring transparency in the sector, which will hopefully bring benefits for the economy.
Dr. Zahid Hussain is the Lead Economist for the World Bank
Interview by Tanjina Taneen
Translated by Abrar Hussain