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Bangladesh Nationalist Party backs central bank autonomy, calls for wider financial reforms

Bangladesh, BNP, Central Bank, Financial Reforms, Amir Khosru Mahmud Chowdhury, Policy Research Institute, Dhaka, Banking Sector

DHAKA: (Oct 21) The Bangladesh Nationalist Party (BNP) supports granting greater autonomy to the country’s central bank but says independence alone will not be enough to fix the deep-rooted problems in the financial sector.

Speaking at a discussion in Dhaka on Monday, BNP Standing Committee member Amir Khosru Mahmud Chowdhury said that along with the central bank, the capacities of other key financial institutions must also be strengthened.

“No matter how much independence we grant, if we cannot develop the capital market and implement necessary reforms, the pressure on the central bank will remain,” he said at an event titled “The Imperative for Central Bank Independence.” The event was organised by the Policy Research Institute (PRI) with support from UK International Development (UKID).

The former commerce minister recalled that significant financial reforms were undertaken during BNP’s tenure in government. “We did not make any political appointments anywhere. We even abolished the Financial Institutions Division under the finance ministry, but the succeeding government reinstated it,” he said, referring to the dual regulation in the banking sector.

PRI Vice-Chairman Sadiq Ahmed delivered the opening remarks, while Ashikur Rahman, principal economist at PRI, presented a paper outlining the case for central bank independence and improved financial governance.

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