Finding good MDs has become difficult in the banking sector: BB governor

Bangladesh Bank (BB) Governor Ahsan H Mansur today said it has become difficult to find good managing directors (MDs) in the country's banking sector.

"Although there are various training institutions for bankers, the most effective training is on the job. But the reality is that we do not have the capacity to make the kind of major investment needed in training and human capital development in the banking sector," he said.

He made the remark at the 15th anniversary of Financial Excellence Ltd at The Westin Dhaka. 

Finance Adviser Salehuddin Ahmed was also present at the event as the chief guest. 

He also focused on overall capacity building in financial management, including public financial management, emphasising engaging cross-border trainers.

BB governor Mansur said building efficient bank management is a big challenge. "It has become difficult to find good managing directors (MDs) in the country now," he added.

He said most of the core banking systems of the country's banks are from India, and that we need to increase our own capacity.

Mansur said political influence is a major obstacle to good governance in the banking sector.

Banks often jump into similar businesses without assessing the risks in advance. Due to this, banks often give loans without understanding the risks, he said. 

He also said that the size of the country's financial sector is only 52 to 53 percent of the Gross Domestic Product (GDP). In China, the ratio is more than 200 percent, and in India, it is about 100 percent. Bangladesh's situation is unacceptable, he said.

Finance Adviser Ahmed said that only hard skill development training for banking sector officials is not enough. Moral training is also necessary, because trained but dishonest people can do more harm than untrained people.

He said the interim government has at least tried to leave an effective footprint for the next government.

"If the next government does not follow good practice, people will bring you down to the streets. History may repeat itself again, because the people are very aware," he said.

"We admit that there are some shortcomings in the regulatory bodies and policymaking. But it is difficult to correct all the mistakes of the past in just 14 months," he said, urging people to have patience.

"We are trying to implement some fundamental reforms in the next few months."

Financial Excellence Ltd Chairman Mamun Rashid said they have organised more than two hundred and fiftycustomised training courses in various subjects including artificial intelligence (AI)-based solutions, project management, negotiation techniques and relationship management in the banking sector, along with many senior recruitment facilitation initiatives and financial consulting for corporates.