Dr Fahmida Khatun, Executive Director of the Centre for Policy Dialogue (CPD) and Bangladesh Bank board member, has warned that mass freezing of business bank accounts could seriously affect trade, employment, and poverty reduction.

She said accounts can be unfrozen if no major irregularities are found.

Speaking at a shadow parliament on banking sector consolidation at the FDCCI in the capital’s Tejgaon on Saturday, Fahmida said past governments often approved banks based on political considerations, and some banks were used to accumulate personal wealth.

She described the current consolidation process as complex and risky, causing public confusion.

Urging the formation of a politically elected government to ensure discipline in the financial sector, she said, “Economy and politics are interdependent. Weak governance cannot sustain economic growth, and short-term governments are not conducive to long-term stability.”

Hasan Ahmed Chowdhury Kiron, chairman of Debate for Democracy, said during the previous Awami League government some officials gave undue advantage to financial mafias, leading to embezzlement of depositors’ funds, leaving many anxious about accessing their money.

Dhaka Government Teachers’ Training College won the shadow parliament debate on bank consolidation, titled “Bank Consolidation Will Restore Discipline in the Banking Sector.” The team defeated Southeast University’s debaters in the final round.