Bangladesh Bank Governor Ahsan H Mansur has announced that 50% of agent banking representatives will soon be women. The central bank is set to issue a circular formalising this directive, he revealed at a roundtable discussion titled Path to Recovery for the Banking Sector, hosted by The Business Standard in Dhaka.
“My feeling is that agent banking will overtake regular banking. It’s a silent revolution,” Mansur stated. He expressed confidence that agent banking, which has already gained significant traction in rural areas, would continue to expand, creating greater financial inclusion across the country.
Strengthening the Banking Sector
Mansur outlined his vision for reshaping the country’s financial system, emphasising that Bangladesh Bank is accelerating reforms with support from the World Bank. Chief Adviser Prof Muhammad Yunus has also shown keen interest in the initiative.
“We want to ensure the independence of the central bank within July-August this year. We will try to solidify the foundation, but all reforms cannot be completed by the interim government. The next administration will need to carry them forward,” Mansur explained.
Addressing governance in the financial sector, he stressed that maintaining good governance was non-negotiable. He also criticised the longstanding practice of appointing unqualified individuals—such as wives and daughters of bank owners—as directors.
“All directors, including existing ones, must go through a fit and proper test to assess their qualifications and experience. If they qualify, they can be directors; otherwise, they cannot,” he asserted. Bank owners themselves will also be subject to the same scrutiny.
Economic Challenges and Recovery
Mansur acknowledged the challenges of wealth repatriation, noting that retrieving illicit funds stashed abroad can take years. However, he remained optimistic, citing successful cases from Nigeria, Malaysia, and Angola. He also highlighted the precarious financial situation of weaker banks, stating that despite ongoing liquidity support, full recovery would take five to ten years.
On the macroeconomic front, he addressed the country’s dependence on borrowing and the urgent need to boost tax revenue. “If revenue collection improves, Bangladesh will not have to depend on the International Monetary Fund for financial support,” he added, confirming that he had already communicated to the IMF that Bangladesh does not currently require its funds.
To streamline banking regulations, Mansur announced the formation of a regulatory simplification task force. The group, comprising bank managing directors and industry experts, aims to reduce excessive reporting burdens and improve operational efficiency.
A step towards Financial Inclusion
Bangladesh Bank’s mandate to ensure that half of all agent bankers are women is a landmark policy that could pave the way for broader financial inclusion. By addressing gender disparities in banking and reinforcing governance standards, the central bank is taking decisive steps to create a more robust and equitable financial system.
