Renowned economist Dr Wahiduddin Mahmud on Saturday said the government owned banks could not prosper due to high political influences in to their banking decisions. “Credit allocations by the banks based on political influences have barred the public commercial banks from thriving and that their burdens have been carried out by the private commercial banks,” Mahmud said.

He made the remarks while speaking as the chief guest at a seminar on “Encouraging banking sector to CSR activities” at the National Press Club in the city. Bankers’ Forum organised the seminar while its president MA Khaleque moderated.

The seminar was also addressed by Abdul Mannan, managing director of Islami Bank Bangladesh Ltd, and Helal Ahmed Chowdhury, managing director of Pubali Bank Ltd.

“Financial sector is a very fragile one, observed the economist, adding, “We should always keep an eye on this sector.” “If the financial sector is not freed from political influences, it will be very tough to protect the hard-earned reputation of this sector,” the economist said.  Too many financial institutions do not necessarily mean they have developed skills., he said.

The Daily Independent Bangladesh/ 8th July 2012