The country’s banking sector can contribute to the country’s inclusive development in a greater way if it could be made competitive, effective and transparent, removing the existing problems, said leading economists. “The prevailing problems are identified. Necessary steps need to be taken to remove the problems as quickly as possible to ensure banking sector’s better contribution to development process,” Director General of the Bangladesh Institute of Development Studies (BIDS), Mustafa K Mujeri, told UNB. Evaluating the overall situation in the banking sector, Mujeri said he does want to term the current situation a ‘crisis’ but acknowledged problems like increase in non-performing loans and problems relating to credit disbursement, reports the news agency. Acknowledging it, AB Mirza Azizul Islam said the situation in the banking sector is not that much satisfactory with the increase in classified loans, slower economic activities and lower demand for credit.Mirza Aziz, a former caretaker government adviser, however, said there is no such situation for which one can claim that the banking system is going to collapse. On recent scams in the sector, Mujeri said the government and the central bank have taken a number of initiatives to overcome the situation but most of the steps are yet to be implemented.Expressing dismay over the delay in punishing the offenders, Mujeri said, “This doesn’t give the right signal, it rather creates confusions and suspicions among people.”“Others will get a massage that nobody will be spared if the responsible persons are punished timely and quickly for their wrongdoings. But if there is any delay, people will get prompted to repeat the offence,” said the economist.Mujeri thinks proper punishment for those who are found guilty will have to be ensured very quickly if the government and the central bank want to restore discipline in the banking sector.Responding to a query, Mirza Aziz said the steps taken so far relating to scams are not enough. “I don’t think these are enough.”On Sonali Bank’s scam, he said no remarkable step was taken over the bank board though the Bangladesh Bank clearly mentioned the board also had responsibility to that end.Mirza Aziz, however, said the irregularities that took place are past now, and hoped there would be no repetition of such irregularities.The central bank has said it is alert and strengthened its supervision and inspection systems.About the formation of banks’ governing bodies, Mujeri said the board is highest policymaking body of a bank where experienced people with adequate knowledge on bank management and its operations must be there to run it efficiently.“It’s not important whether the person is political or non-political one. But he must be experienced and must have clear idea about the operation of a bank and capability to contribute to the bank positively.But it won’t be wise for the bank if someone gets appointed only under political consideration,” he added.