Currently we see the condition of banks and financial institutions in Bangladesh, there are various challenges, defaulted loans, mismanagement, corruption and lack of efficiency. All in all, there are many problems in the banking sector. But here various efforts are being made from the central bank and the government to get out of them but little success. Success is not yet remarkable. Therefore, if we want to move forward in the future, financial institutions, banks must be consolidated. Must be fixed.

The biggest issue is the weakness in the financial sector, the root of various problems is the lack of good governance. One of the key aspects of good governance is transparency, which we call transparency. Second is accountability, which we call accountability. These two things are lacking. That means the practices and decisions in banking are not transparent. Few people especially bank directors and senior management. Many people do not have a proper idea about the decisions taken by the Central Bank. Not to disclose everything but the process, the transparency of the decision that is being taken, whether it is being taken, whether it is being taken with enough attention and especially whether it is being taken in the public interest or not? Because, most of the money in the banks belongs to the people. Deposit amount. Shareholder has some money and different sources. So we cannot see this transparency.

In most cases, if there is any deviation, many people do not admit it. Second, if you make a mistake, say, 'I've done it before.' i don't know People below me don't work properly'. Non-performance, dereliction of duty—everything has to be held accountable. And the lack of both is the result of all the injustices we see. I see all the corruption. But they are published in the media, banks also find out these irregularities. But they are not solved, they are not judged. Those who do wrong are encouraged. But the good guys,—they fall behind. They are discouraged. They often suffer from various mental pains. These things are most important.

The IMF's $ 4.7 billion loan will be disbursed in seven equal installments every six months over 42 months. Notably, the IMF has given many conditions to the banking sector. The first installment has already been disbursed by the IMF. Before the remaining six installments, the IMF will review. Now out of these six reviews but the third and fifth reviews are related to risk and guarantee and financial transparency of state-owned enterprises. State-owned enterprises, also known as state-owned enterprises, have various risks. They take money from the government. They cannot work efficiently by losing they will see this risk. And what will be reviewed for the fifth time, it is related to some large state-owned organizations. In particular, the financial statements of 50 companies, financial statements, have to be given. There will be income statement, balance sheet, profit loss account. State-owned enterprises have no review of risks, financial management, future prospects. I don't see any strategy as such, even though the campaign talks about it.

If we look at the financial situation as it is now, most of them are facing losses. Therefore, in this article, I draw attention to transparency-accountability in the financial sector, as it is often called. In various cases it is of course necessary for governance, democracy in the country - these two things are very necessary. But as we are now thinking about the financial sector, these two issues become very relevant. It can be said that the World Bank has long emphasized transparency and accountability in its reports on good governance, especially since 1994. However, the IMF has emphasized transparency and accountability since the 1998-99 financial system. The main reason for this is that if there is no transparency and accountability in the financial system, financial stability or financial stability, waste of resources, public trust, then properly contributing to various businesses; These problems are seen. If we can't do two things, it will have a negative impact on all of us. And it is but now we see.

If I look at the laws and regulations in Bangladesh, first of all the laws and regulations or how many procedures or processes are there in Bangladesh, but I would say that they are fairly satisfactory. But there are considerable weaknesses in their compliance or implementation. For example, my country has a company law; then there is the Bank Companies Act. Then our registrar is a joint stock company, they have some rules. Again there are rules and regulations of Bangladesh Security Exchange Commission. When companies come to share market, they have different laws, rules, different compliances. But they don't. First of all these regulatory agencies or government agencies will try to enforce them well, that is also not the case. The stakeholders, who are supposed to enforce them well, do not take them into account. On top of that, there are rules of Bangladesh Bank, there are circulars of Bangladesh Bank.

In banking we know Basel is one-to-three; Basel means international financial rules, we follow them. That means we have to follow the international standards as well as the rules. Again, as our Financial Reporting Council has done to monitor, it is a good initiative. The Financial Reporting Council is an independent body of the government, they will look at various companies whether public or private, how their audit reports are, whether the audit reports are correct or not. If the audit is not done properly then it, especially the profit of the company, if the loss is not seen properly, then it has a negative impact on everyone. And especially for listed companies, which do various types of transactions in the stock market, if the reports or audits are not done properly according to the FRC, it proves the lack of transparency and accountability. It's not just a liability on the company; Auditors, Chartered Accountants, Management Accountants, they also have enough responsibilities. Apart from this, there is IFRS, we are supposed to follow the International Financial Reporting System. Various companies follow them, especially auditors follow them.

Now let me say a couple of words about the link between transparency and accountability. Transparency and accountability that state-owned organizations; public services that are provided, whether they are going to the right place or not, apply to everyone. Financial management and delivery of services are being done properly or not. The second is that common people have the right to get the services of these things. And whether they are getting it or not. Are they satisfied here or not? And what do they think about it? What is their opinion? It is necessary. Therefore firstly the service, secondly those who take the service or to whom the service is supposed to be delivered and how they are taking it. From that point of view, if there is no transparency in transparency, then it is difficult. Another is morality.

Meaning, we value business or administration; What we call ethics, whether they are following ethics or not. Is there integrity? Whether there is sincerity or not. But that comes in transparency. But without these qualities you cannot be transparent. You hide information. Hiding information is a terrible thing. We see information is often hidden. Information is not disclosed. It's all action; Administration said or development work; All but the impact becomes zero then. So if we don't see this thing, then there is no clarity.

Accountability means that the actions we are doing, the money we are spending, the resources we are using, are they being used efficiently and correctly, and are the decisions being implemented? For example, in accountability we see whether the money has been allocated, whether the money has been spent properly, whether the extra money has been spent, then whether it has been done on time, whether its quality is right or not, these come under accountability. There are two aspects of accountability, one is the paper statement. Another thing is how much they are getting and how they are getting the actual products and various services. See how much money has been spent. So accountability is needed for this. Accountability now takes many forms. One is accountability to the public, which we call public accountability. Another is legal accountability, how accountable we are legally. How much am I under the law? Political Accountability, the extent to which a government is accountable to the people and to Parliament. Again there is administrative accountability. There are people in administration, how are they accountable. Whether the decision is right or not, if there is a mistake or if there is a lack of skill or corruption or not? Finally financial accountability, I mean, how does one spend the money? You see, in all cases accountability is required. One balances the other. Transparency ensures accountability. Being accountable requires transparency. The two complement each other. If you leave one and take another, you will not get benefit.

What I conclude with is the lack of information. Collect data properly. Save properly. And tell them to specific people. People will want to know, let them know. or any inquiry committee informing them. And they are working on them again, informing them. Without these, you will not get benefit in any activity.

So at the root of everything we say that there must be accountability to the people, participation of the people, everything must be done for the people. Everything must be seen to protect democracy and human rights. It should reflect the will of the people. For this there is a need for transparency and accountability. It is said about banking and financial sector but it is applicable to all sectors.

Writer: Former Governor, Bangladesh Bank and Professor, BRAC University