Again you didn't mention the fact that majority of the NPLs were from public sector banks. I know you didn't want to get into technical details but I think this factoid is very, very important.
In Sheikh Hasina's Bangladesh, the theoretical distinction between public and private sector banks didn't matter. Islami Bank was privately owned and a very well managed bank that was taken over at gun point and hollowed out, while being under private ownership.
There was already a Islamic bank (I think the name is Janata or Padma bank) that was nationalised in 2018 because it was on the verge of bankruptcy. Islamic banking has been a failure everywhere its been tried. Trying the same thing over and over again expecting different results is the definition of insanity.
No matter who comes to power after the election they will increase regulations on private banks to virtue signal to the middle class people. This is despite the fact, again, most of the NPLs were in public and Islamic banks.
The four large public sector banks are Janata, Uttara, Sonali and Rupali. These were Pakistani owned banks were nationalised in 1972. Yes they have carried large NPLs, which are suboptimal and yes they should have been privatised long ago. But to claim that these NPLs are the major problem now, or the Islamic banking is the problem -- that's just ignorant of what happened to the banking sector under Hasina.
Firstly, lot of cronies were given banking license in early 2010s, and the regulatory functions were shifted from the central bank to the Ministry of Finance. This was all about corruption, money laundering, and scams. All of them are now practically insolvent, quite predictably.
Secondly, Islami Bank (whose main business was not Shariah banking but just normal banking services) was taken over by S Alam Group using the DGFI. This was cheerlead by the regime's intellectual hacks as cracking down on the Islamists etc, even though the whole thing was about cronyism at its most vulgar. In the process, the largest and best run private bank in the country was brought to near insolvency.
These aren't really secret, inside stuff. Ten minutes of googling will produce a lot of good material.
Again you didn't mention the fact that majority of the NPLs were from public sector banks. I know you didn't want to get into technical details but I think this factoid is very, very important.
In Sheikh Hasina's Bangladesh, the theoretical distinction between public and private sector banks didn't matter. Islami Bank was privately owned and a very well managed bank that was taken over at gun point and hollowed out, while being under private ownership.
I don't buy it. Why were only the Islamic banks targeted? The NGO banks also rely on state support but their balances are fine.
Islamic banks were targeted because it is easier to sell plundering these banks as necessary to fight against 'Islamists and terrorists'.
There was already a Islamic bank (I think the name is Janata or Padma bank) that was nationalised in 2018 because it was on the verge of bankruptcy. Islamic banking has been a failure everywhere its been tried. Trying the same thing over and over again expecting different results is the definition of insanity.
No matter who comes to power after the election they will increase regulations on private banks to virtue signal to the middle class people. This is despite the fact, again, most of the NPLs were in public and Islamic banks.
The four large public sector banks are Janata, Uttara, Sonali and Rupali. These were Pakistani owned banks were nationalised in 1972. Yes they have carried large NPLs, which are suboptimal and yes they should have been privatised long ago. But to claim that these NPLs are the major problem now, or the Islamic banking is the problem -- that's just ignorant of what happened to the banking sector under Hasina.
Firstly, lot of cronies were given banking license in early 2010s, and the regulatory functions were shifted from the central bank to the Ministry of Finance. This was all about corruption, money laundering, and scams. All of them are now practically insolvent, quite predictably.
Secondly, Islami Bank (whose main business was not Shariah banking but just normal banking services) was taken over by S Alam Group using the DGFI. This was cheerlead by the regime's intellectual hacks as cracking down on the Islamists etc, even though the whole thing was about cronyism at its most vulgar. In the process, the largest and best run private bank in the country was brought to near insolvency.
These aren't really secret, inside stuff. Ten minutes of googling will produce a lot of good material.