Expressing concern over the weak state of the country’s banking sector, Bangladesh Bank Governor Ahsan H. Mansur said it has become increasingly difficult to find well-qualified managing directors (MDs) for banks.

Speaking at an event at a city hotel on Saturday, Mansur said, “Finding a competent MD for bank management has become a major challenge. Similarly, recruiting quality heads of departments—whether in corporate or consumer divisions—has also become difficult.”

He added, “It is hard to get properly trained MDs with the right knowledge. This is, indeed, a failure in our banking sector. Looking ahead, the challenges will only grow.”

The governor emphasized that without analytical and operational skills among bankers, a strong financial sector cannot be established.

Decision-making requires understanding and analysis. These competencies need to be implemented at the corporate level, within banks, at Bangladesh Bank, and at government levels,” he said.

Mansur highlighted the importance of skill development through proper training.

We need to develop specialized training institutions, which should be led by the private sector. While Bangladesh Bank has training institutes such as BIBM and the Institute of Bankers, more effective programs are needed to enhance bankers’ skills. This is crucial for the financial sector,” he added.

Pointing to the sector’s weak performance, the governor said, “The financial sector in Bangladesh is very fragile. Its size is only 52–53% of GDP, while in China it exceeds 200% and in India it is nearly 100%. This is not acceptable. Non-performing loans are rising, reflecting weaknesses in banking management.”

Mansur also identified political influence as a major obstacle to good governance in banks.

Banks often take on businesses without proper risk assessment, which sometimes leads to lending without understanding the risks,” he said.

On the path towards a cashless society, the governor noted that currently only 64% of the population is financially included.

The major challenge is integrating technology with the financial sector. We still have a long way to go,” he added.

Emphasizing technology adoption in microcredit, Mansur said, “Microcredit needs to be automated to survive. Most banks in Bangladesh use core banking systems from India. We need to strengthen our own capabilities. Integration of finance and technology is essential.”

The government will provide various supports, but without training the key drivers of the financial sector, future progress will be hampered. Mid-level officers must also be engaged in this development journey for success to be achieved,” he concluded.