Banking sector reform not feasible for interim government, says Finance Adviser

Bangladesh's money chief admits he cannot fix the broken banking system. Finance Adviser Salehuddin Ahmed says the job takes way more time than his temporary government has. He wants the next elected leaders to tackle the massive mess left behind. Ahmed blames the old government for wrecking the country's financial health. Former officials stole billions of dollars from public funds.

The government already pumped 52,000 crore taka into twelve failing banks. They had given another 22,000 crore before that to keep the system running. Ahmed says even all this cash might not solve the problems completely. The damage goes deeper than anyone expected from the previous administration.

Banks face serious trouble keeping enough money on hand for daily operations. Ahmed warns about raising interest rates on government savings bonds. Higher rates would make everyone buy those bonds instead of putting money in regular banks. This would drain even more cash from struggling financial institutions.

Bangladesh Bank keeps working to save weak lenders across the country. Officials point to Islami Bank as one success story from their rescue efforts. The government passed new rules to protect people who deposit money in any bank. These laws promise to pay back customers even if their bank completely fails.