The deteriorating health of banking sector has become a major concern for the economy, the World Bank said yesterday.

Transparency International Bangladesh yesterday termed the Bangladesh Association of Banks' proposal of formulating the Bank Reporting Act as illegal and expressed deep concern over it.

Parliament yesterday passed the Banking Companies (Amendment) Act 2017 amid criticism from various quarters that the revised law will help a single family tighten its hold on a private bank.

Finance Minister AMA Muhith tells parliament that the government has given subsidy to state-run banks in a bid to avoid any possible disaster in banking sector. Amid criticism that there is no good governance in banking sectors, Muhith says his government is working very seriously for ensuring good governance in banking sector and money market.

Default loans have dogged the country's banking sector for nearly three decades now, despite various reform efforts -- an alarming pattern that has damaged the economy and deprived honest borrowers of funds.

Political unrest, vulnerability in the banking sector and low investment stand in the way of higher GDP growth and economic development, the World Bank said.