Requests for new banking licences must be turned down bravely: Salehuddin

Former finance adviser in the interim government Salehuddin
Ahmed today (11 April) said authorities must be prepared to bravely reject
requests for new banking licenses to protect the stability of the financial
sector.
Speaking at the "Risk
Conference on Banking & Finance 2026," organised by dFin and Dnet in
Gulshan, Salehuddin shared his experience as a former central bank governor,
noting that he frequently received proposals for new bank licences but managed
them with technical caution.
He stressed that the current state
of the industry, where depositors are struggling to withdraw their funds from
distressed banks, underscores the necessity of saying "no" to such
requests.
The former adviser highlighted the importance of financial inclusion and the
role of technology-based solutions for those aiming to contribute to the
economy.
He warned against the risks of
seeking high interest rates in weak banks, noting that many such institutions
have now been merged.
"Compliance is very important
in the banking sector, and it has to be strictly followed in the financial
sector," he said, adding that if the economy weakens, it negatively
impacts all financial segments.
He also addressed the insurance
sector, which he noted is often perceived as fraudulent despite its critical
importance to the overall financial ecosystem.
To mitigate financial risks, Salehuddin urged bankers to assess the financial
literacy of customers before granting loans.
He added that the proper implementation of robust risk management policies is
essential for the sustainable health of the industry.
















