Farmers Bank in disarray

Farmers Bank's MD has reportedly been terminated by Bangladesh Bank. A newspaper report said the bank would be unable to pay its employees' salaries for December. The bank, along with eight others, was permitted to operate by the government based on political consideration.

The pathetic condition of the Farmers Bank should serve as a reminder to the government about what might happen when banks are permitted without proper vetting. Unfortunately, it seems more focused on increasing the number of banks when the focus should actually be on improving their performance. Hopefully, after the latest crisis, the government will back off from approving the three new banks that are now in progress.