The government recently allowed six new banks in the private sector. The government’s move drew criticism since there were 47 banks in place, which were said to be sufficient for providing banking services in urban areas after meeting the needs of the urban population.

Allegations were also raised by various groups, saying all the new banks are linked with either lawmakers of ruling Awami League or influential persons.

Bangladesh Bank, however, denied the allegations and said the new banks were approved after “proper evaluation” and without any political consideration.

It said the mentors of the new banks are citizens of Bangladesh and their political identities had nothing to do with the approval.

HN Ashikur Rahman, a ruling party lawmaker from Rangpur-5 constituency and also the treasurer of Awami League, got the go-ahead from for Meghna Bank.

Of 22 sponsor shareholders, Ashikur Rahman is the chairman of the proposed Meghna Bank.

During an interview with online news portal banglanews24.com, he expressed his views on different issues relating to the approval of new commercial banks and his preparation and plans in the banking sector.

Question (Q): You have received the letter of intent for Meghna Bank in April. To get the final go-ahead, you will have to submit the overall business plan for your proposed bank by the next October. What progress you have made in this regard so far?

Ashikur Rahman: We are almost done with the business plan and hope that will be able to submit the business plan in time. We are now selecting the persons to be included in the bank’s governing body. Appointments to the top positions have already been done.

Q: Whom do you expect to be in the governing body of Meghna Bank?

Ashikur Rahman: Though the members of the governing body have not been finalised yet, we want to have some experts and honest people on board. We also want to make sure that the investment of the governing body’s members would be white money.

Q: Questions have already been raised over granting approval for new banks in political consideration. What you would like to say over this issue?

Ashikur Rahman: The decision to allow new banks was a political one. Political decision is a must for any large scale initiative. But, those who got approval for new banks, they got it after proper evaluation by the central bank.

No irregularity took place during the process. So, it can not be said that the banks are being setting up only through political backings. We will gain people’s confidence through our service.

Q: what would be the key policies of your bank?

Ashikur Rahman: We want to bring the country’s deprived people under the banking service. That’s why we will set up our corporate office in Rangpur. We want to assimilate the people of North Bengal to the mainstream economy. On the other hand, we shall pay highest importance to information technology.

Q: Why do you want to set up your bank’s corporate office in Rangpur?

Ashikur Rahman: We shall maintain two key policies. One is—our corporate office which will pay more importance to small and medium entrepreneurs. However, the headquarters of the bank will be in Dhaka.

Q: What do you think about Bangladesh Bank’s monitoring system in the banking sector?

Ashikur Rahman: The commercial banks are stepping aside from mainstream banking activities. So, the central bank should strengthen its monitoring policy.

Q: Bangladesh Bank recently decided that the banks must have equal number of branches in urban and rural areas and no wealth can be bought in name of the bank— what you think about these decisions from the central bank?

Ashikur Rahman: I welcome the directives. Our bank would also pay importance to rural banking. Also, I do agree with the restriction over purchasing properties on the name of the bank. Recently, some banks have been buying wealth illegally. The initiative will prevent that illegal practice.

Q: Although government is not a primary dealer, the banks have to provide loans to it. What is your opinion on this?

Ashikur Rahman: In case of the new banks, this policy should be relaxed. Since we will have to draw deposits from clients in the first place, imposing such policy at the very beginning of our operation will be disastrous.

News: Daily Sun/Bangladesh/25-Aug-12