Patronizing Oligarchs Will Sink the Economy: Prof. Mahbub Ullah
A Bangladesh Institute of Bank Management (BIBM) conference highlighted critical concerns regarding the state of Bangladesh’s banking sector and the broader economy. Speaking as a special guest at the event in Mirpur, National Professor Mahbub Ullah warned against the continuous patronization of oligarchs, stressing that relying on them to stabilize the economy is a dangerous course. He asserted, ‘The economy has derailed this time by patronizing oligarchs; in the future, it will not just derail, it might end up in a river. Therefore, we must be extremely cautious about such individuals.’
Professor Mahbub Ullah further remarked that Bangladesh has transformed into an exploitative state where state machinery favors a handful of wealthy figures rather than ordinary citizens. Stating that the country’s banking system stands fragile and on the verge of destruction, he added, ‘This exploitation is not for the ordinary people; this exploitation is for a small number of wealthy and influential businessmen or multimillionaires whom we call oligarchs. The state itself has created these oligarchs in this country.’
Addressing structural governance issues, Professor Mahbub Ullah noted that rulers at the peak of power treated the state as private property to distribute privileges to associates. He also emphasized that the primary challenge facing financial institutions is a severe crisis of confidence caused by rampant irregularities. Observing that many banks would have vanished under true market rules, he stated, ‘How fruitful these efforts will be in keeping those banks alive is unknown to me,’ while suggesting that lessons can still be learned from the few properly managed institutions.
Presenting the keynote paper, Barkat-e-Khoda, a former professor of economics at the University of Dhaka, provided staggering figures detailing the financial mismanagement in the sector. He estimated that Tk 500,000 crore has been embezzled through fraudulent loans and corruption, while another Tk 250,000 crore to Tk 300,000 crore has been laundered abroad. He explained that political figures, bank directors, and business syndicates formed interconnected networks to bypass internal risk controls and siphon off funds without adequate collateral or repayment intent.
The two-day annual banking conference concluded with calls for urgent policy reflection and fundamental reform across the financial sector. The session was introduced with a welcome speech delivered by BIBM Professor Shah Md. Ahsan Habib. Experts and speakers at the event collectively underlined that restoring public trust, dismantling illicit syndicate networks, and establishing strict regulatory compliance are imperative steps to prevent the complete collapse of the nation’s banking infrastructure and secure long-term economic stability.
