Bangladesh Bank governor Ahsan H Mansur on Tuesday warned that some troubled banks may not survive, while National Bank chairman Abdul Awal Mintoo criticised the remarks, urging the governor to speak less.

Mansur said that banks burdened with classified loans exceeding 80 per cent of their outstanding loans would not survive.

Speaking virtually at a session titled ‘Macroeconomic Policy and Governance in the Banking Sector’ on the final day of the ‘Recommendations by the Taskforce on Re-Strategising the Economy’ conference, organised by the Centre for Policy Dialogue in Dhaka, the governor said that while the central bank has restructured many weak banks, it would not be possible to keep all of them afloat.

However, National Bank chairman Abdul Awal Mintoo, who also served as the former president of the Federation of Bangladesh Chambers of Commerce and Industry, sharply criticised the governor’s remarks.

Urging Mansur to speak less, Mintoo questioned whether shutting down troubled banks would improve the economy, which he argued had been left in disarray by the ousted Awami League regime.

Expressing doubt about the task force’s potential to positively impact the economy, Mintoo argued that its recommendations were disconnected from political realities.

‘No reform can be done without politicians,’ he said.

Earlier, Ahsan H Mansur said that the draft of the bank resolution ordinance, aimed at addressing the issue of troubled banks, had already been prepared.

He mentioned that asset valuation of six banks, primarily Shariah-based institutions previously controlled by a business group, is currently under review.

Mansur said that the bank resolution ordinance would be submitted to the advisory council in April for approval.

He also discussed various measures taken to enhance the central bank’s autonomy and tackle inflation.

Dhaka Bank chairman Abdul Hai Sarker, who also chairs the ad hoc committee of the Bangladesh Association of Banks, remarked that they did not accept the recommendations made by the task force.

He pointed out that there were no representatives from the banking sector within the task force.

Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, and Md Main Uddin, former chairman of the banking and insurance department at the University of Dhaka, also addressed the session.

Monzur Hossain and Fahmida Khatun, members of the task force, made keynote presentations, outlining the suggestions in their report.