ENTRY of new banks will deepen the turmoil the banking sector is currently in, warns M Muzahidul Islam, a professor of banking
at Dhaka University.
'I think emergence of the new banks is likely to create pressure on several old banks to go for merger with other banks for survival, if not file for bankruptcy,' he said in an exclusive interview with New Age on September 28.
Muzahidul Islam believes it is not appropriate for the government to give permission to new banks on political consideration. 'In the present world order, most political, social and financial decisions are made on economic considerations; after all, we live in a political economy,' he said.
He also thinks that the banks need to have more customer-friendly rules and regulations.
'Most banks calculate monthly interest or profit or whatever they call it on savings account depending on the lowest balance of the account in a month,' he said.
'If an account holder maintain five million taka as balance in his or her account in the first 29 days, out of 30 days, in a month, and withdraw 4.9 million taka on the 30th day, the bank will calculate monthly interest or profit on Tk 100,000. It is not fair,' he added.
[ The full text of the interview is on Oped Page 9. ]
