Over Tk 922.61 billion was embezzled in 24 major banking scams in a period between 2008 to 2023, reveals a observance of Centre for Policy Dialogue (CPD).

The economic think-tank on Monday mention that a good number of Bangladeshi banks are facing extreme liquid crisis of which many are 'clinically dead'.

CPD Executive Director Fahmida Khatun, addressing a briefing, recommended for prudent action to reform the boards of respective banks to overcome challenges.

"Many banks have become clinically dead. These banks will not be able to stand. They need to be allowed to die naturally. The government has run these banks by replenishing them with money and capital,” Fahmida said at media briefing at CPD Office in Dhanmondi of the capital.

Fahmida said that some 11 banks could not save provisions at different rates in accordance to the international standards based on the 2021 reports of respective lenders.

"Third and fourth generation banks are clinically dead. At one time Islami Bank Bangladesh was a good bank. After its capture, it has become extinct,' she said.

Claiming that country’s economy is facing serious hardship now after independence, Fahmida said that banking sector of the country came forward to arrange the economy, created entrepreneurs, financed.

“Many conglomerates have been grown due to the forward looking role of banking sector to industrialisation,” she said.

Stating that these big groups are playing a role in the economy, Fahmida said that country's banking sector is now working for the expansion of individuals and groups.

“The rules are being made because of a few groups,”

Commenting that the entire banking sector has now gone outside the rules and regulations, CPD Executive Director mentioned that Bangladesh Bank has lost all its space to practice independence. “In more than a decade, there have been 24 major 'scams' in the banking sector, involving more than Tk 920 billion in loan scams,” she added.

Recommending the formation of a banking commission for three months to identify and solve the problems in the banking sector, the organization said, the financial institutions department of the finance ministry should be closed to reduce dual administration in the banking sector.

Bangladesh Bank does not have the control of government banks for this category, according to the economic think-tank.

CPD Distinguished Fellow Dr Mustafizur Rahman suggested for an independent banking commission to break the ‘vicious cycle’ in economy.