Banking scandals, market manipulation deepen capital crisis, says finance minister

Major banking scandals, money laundering, market manipulation, and misreporting have created severe capital shortages across banks and the private sector, Finance Minister Amir Khosru Mahmud Chowdhury said today.

"Despite major banking and capital market scandals, financial discipline has not been restored, as large sums were siphoned off from banks and many companies entered the stock market through false representation," he said.  

This has discouraged strong companies from entering the market and weakened fair competition and price discovery, he said at the Financial Accounting and Reporting Summit 2026 at the Pan Pacific Sonargaon Hotel in Dhaka.

The finance minister said economic management and related institutions in Bangladesh have grown increasingly ineffective, with accountability and monitoring systems failing to function properly.

He noted that the overall ecosystem has weakened significantly since the Financial Reporting Council's establishment in 2015, despite the council and other regulatory bodies playing a vital role in ensuring corporate transparency.
The minister also warned against a culture in which some shareholders treat banks as personal property, even though banks operate primarily on depositors' funds.

He cited the self-regulation model of the Bangladesh Garment Manufacturers and Exporters Association in issuing exporters' utilisation certificates as a benchmark, saying similar accountability is needed in accounting, auditing, and financial reporting.

Khosru, who also serves as planning minister, said Bangladesh is attracting strong interest from international investors and global fund managers. However, such investments will depend on confidence in the country's financial reporting and governance systems.

He urged regulators, businesses, and professional bodies to adopt global-standard practices, restore trust and discipline, and build a transparent investment environment.

The summit was jointly organised by the Financial Reporting Council, the Institute of Chartered Accountants of Bangladesh, and the Institute of Cost and Management Accountants of Bangladesh.