President Mirza Fakhrul Islam Alamgir on Thursday urged bank owners and bankers to work towards restoring public confidence in the country’s banking sector and regaining its reputation.

He 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 while the people had been struggling over the past years to establish democracy and good governance, “unfortunately, hundreds of thousands of crores of taka were siphoned out of the country through the banking system with the backing of powerful quarters.”

As a result, the banking sector has become extremely fragile, he said, stressing that everyone must work responsibly to overcome the severely weakened economy and fragile banking system and restore the confidence of customers and the people in the overall banking sector.

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 “fascist regime” through the 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.

The initiative, he hoped, will play a positive role in preventing irregularities in the banking sector.

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

He called upon the bankers’ leaders to ensure credit facilities for new and young entrepreneurs and encourage investment in innovative sectors, including agro-processing industries.

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

But, they said, thousands of crores of taka had turned into default loans as powerful groups siphoned off money from banks in the past, terming the failure to protect the interests of depositors “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 the existing rules regarding paid-up capital and dividend payments, and ensuring law and order.

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

The President’s secretaries were present during the meeting.