DHAKA, April 30, 2025 (BSS) - Bankers, experts, public officials in the 
financial and trade sectors at a dialogue today laid emphasis on 
comprehensive reforms in the country's banking sector to overcome the 
evolving global financial trends, including potential pressures from the US 
tariffs and the stark realities highlighted in the World Bank's recent 
Bangladesh Development Update.

They urged both the government of Bangladesh and international bodies like 
International Chamber of Commerce (ICC) and World Trade Organisation (WTO) to 
come forward to provide solutions.

They have come up with the observations at the dialogue titled "Global 
Financial Trends and Reforms: Implications for Bangladesh" organised by 
International Chamber of Commerce, Bangladesh (ICCB) in a city hotel.

In his speech, President of ICC Bangladesh Mahbubur Rahman warned that the 
full implementation of additional US tariffs could significantly strain the 
nation's banking system by reducing export earnings, tightening foreign 
currency liquidity and escalating non-performing loans, particularly in 
trade-reliant sectors.

"It is therefore imperative for Bangladesh to adopt resilient financial 
strategies and regulatory reforms that safeguard economic stability in the 
face of these external shocks," he added.

Despite the economy's resilience in many areas, structural weaknesses within 
the financial sector remain a critical challenge, the ICC head said.

"This underscores the urgent need for comprehensive banking reforms, enhanced 
regulatory oversight and strategic policy interventions to bolster financial 
sector confidence and ensure sustainable economic growth in the coming 
years," he added.

He remarked that the recent Bangladesh Development Update report by World 
Bank warned of a deepening crisis in the country's banking sector, citing 
long-standing structural weaknesses, rising non-performing loans (NPLs), and 
governance challenges.

Mahbubur Rahman said the report flags that gross NPLs have doubled to over 
Taka 2.9 trillion, with nearly half of these concentrated in nine state-owned 
banks. 

"Capital shortages, slow adoption of international standards and a fragile 
legal and institutional framework for loan recovery are among the systemic 
issues urgently needing reform," he continued.

Rahman said if these issues are left unaddressed, it may undermine both 
financial stability and investor confidence.

"The interim government's recent reform initiatives, in coordination with the 
Bangladesh Bank, are beginning to uncover the full extent of these risks," he 
said, adding that the message is clear: reform is not optional, it is 
essential.

ICC vice-president AK Azad urged ICC and WTO to give attention to the 
aftermath of implementation of US tariffs to countries like Bangladesh. 

He underscored the need for ICC and WTO interference for the settlement of 
insurance claims for the damaged factories during political turmoil. He urged 
the central bank to open the exchange rate.

Chair of the ICC Global Banking Commission Florian Witt, in his keynote, 
echoed the call for transformative action within Bangladesh's banking sector. 

He specifically advocated for the revitalization of state-owned banks through 
strategic recapitalization and aggressive NPL reduction.

Witt also proposed a framework that encourages bank mergers to create larger, 
more resilient banking groups. 

Deputy Governor of Bangladesh Bank (BB) Md. Zakir Hossain Chowdhury said BB 
has taken a lot of reform activities recently, but time hasn't come yet to 
evaluate the result of the reform. 

He said Bangladesh Bank always consulted with stakeholders, private sectors 
and development partners.

Chairman of the Bangladesh Association of Banks and Chairman of Dhaka Bank 
PLC Abdul Hai Sarker said if all the stakeholders work together Bangladesh 
can cope up with changes coming. 

Chairman of the Association of Bankers Bangladesh (ABB) Selim R F Hussain 
said Globalisation 2.0 is going to be very different from what it was earlier 
as many geopolitical changes are happening across the world. 

There is something that cannot be influenced by small countries like 
Bangladesh, they can only try to respond to them, he added.