Ahsan Mansur says the financial sector “cannot recover” as long as the current judicial system remains unchanged

Bangladesh Bank Governor Warns Financial Sector Cannot Recover Under Current Judicial System

Bangladesh Bank Governor Ahsan H. Mansur has raised serious concerns over the future of the country’s financial sector, warning that it cannot recover unless the existing judicial framework is overhauled. He also revealed that the central bank is preparing to amend the Artha Rin Adalat Ain (Money Loan Courts Act) in the near future.

In a recent interview with a local media outlet, Dr Mansur sharply criticized the judiciary’s role in undermining financial discipline.

“If the judicial system continues functioning the way it currently does, the financial sector will never recover,” he warned.

He stressed the need for a unified approach: “Bangladesh Bank, the government, and the judiciary must work in sync. To meet global standards, we must develop comparable institutional capacity and accountability.”

Zero Tolerance for Loan Defaulters

Addressing the chronic problem of non-performing loans (NPLs), Governor Mansur called for a firm stance on defaulters.

“A defaulter must be called a defaulter—plain and simple,” he stated.

He further argued that even if a borrower manages to secure a stay order from the High Court, Bangladesh Bank should still classify them as a defaulter. “Because no one understands a borrower’s risk profile better than the bank itself—not even the court,” he said.

Dr Mansur pointed to a recent case involving Agrani Bank, where a borrower was officially marked as a defaulter despite holding a stay order, prompting a warrant to be issued. “That was the correct decision, from a policy standpoint,” he affirmed.

Allegations of Systemic Looting in Banking Sector

Responding to questions about banking reforms over the past year, the governor painted a bleak picture of long-standing corruption and mismanagement.

“This is not a sudden development,” he said. “Over the past eight to nine years, banks and financial institutions have been systematically captured and drained of their resources.”

He described the banking sector as a “honeypot” exploited for personal gain. “Nobody prioritized the protection of public deposits. Instead, the sector became a playground for looters,” he lamented.

Dr Mansur alleged that this plunder took place “in full view of the government” and “under the supervision of Bangladesh Bank”—yet no action was taken. In some instances, he said, “officials even aided the looters.”

He recalled warnings he had issued during his time in civil society, including a direct appeal to a former central bank governor: “I told him, ‘Watch out for Mr. X. If he captures the banks, the system will implode.’”

Using a striking metaphor, Dr Mansur concluded: “At the time, I said if multiple banks collapse, we’ll need ambulances. And that’s what happened. The banking sector was handed over to a single family and opened up for looting.”