President Mirza Fakhrul Islam Alamgir on Thursday urged bank owners and bankers to take effective steps to restore public confidence in the country’s banking sector and regain its reputation.

Fakhrul made the call when a delegation of the Bangladesh Association of Banks (BAB), led by its Chairman Abdul Hai Sarker, met him at Bangabhaban in the afternoon.

President’s Press Secretary Md Sarwar Alam briefed reporters after the meeting.

Chairmen, managing directors and chief executive officers of 26 state-owned and private banks were part of the delegation.

The President said hundreds of thousands of crores of taka had been siphoned out of the country through the banking system with the backing of powerful quarters, while people had been struggling to establish democracy and good governance.

As a result, the banking sector has become extremely fragile, he said, stressing the need for all concerned to work responsibly to overcome the weakened economy and fragile banking system and restore the confidence of customers and the people.

Mirza Fakhrul expressed hope that the situation could be overcome within a short time through sincere efforts by the government and all concerned.

He said banks were taken over during the previous regime through alleged misuse of intelligence agencies, while shares were forcibly taken away.

The President said no political figures were being appointed as directors of banks under the current government, expressing hope that the initiative would help prevent irregularities in the banking sector.

He also urged bank owners to use their corporate social responsibility (CSR) funds to establish technology and engineering education institutions, hospitals and colleges, as well as for social development and human welfare.

The President called on bankers to ensure credit facilities for new and young entrepreneurs and encourage investment in innovative sectors, including agro-processing.

During the meeting, the BAB delegation said the banking sector is a major driving force of the country’s economy.

They said thousands of crores of taka had turned into default loans as powerful groups siphoned money out of banks in the past, describing the failure to protect depositors’ interests as “humiliating” for them.

The BAB leaders said only around 30 percent of the country’s total financial transactions were conducted through banking channels and stressed the need to promote the digital economy and introduce QR code-based transactions.

They also emphasised increasing employment in the banking sector, opening bank branches at the village level, maintaining existing rules on paid-up capital and dividend payments, and ensuring law and order.

The delegation briefed the President on the current problems, challenges and prospects of the banking sector.

The President’s secretaries were present at the meeting.