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Published : 27 Jan 2026, 08:25 PM
• Businesses remained silent when state intervention distorted financial system and money was smuggled out
• Low, capped interest rates are unlikely to return soon
• High rates are a governance problem, not just a monetary one
Bangladesh Bank Governor Ahsan H Mansur has sharply criticised the country’s leading business organisations for what he described as their “puppet-like” conduct during the period when the government capped bank lending rates at 9 percent.
Speaking at a discussion in Dhaka on Tuesday, Mansur said prominent trade bodies, including the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), had failed to act independently or responsibly when state intervention distorted the financial system.
“When the loan interest rate was fixed at 9 percent, business organisations remained silent, some even applauded it” he said. “They demanded the policy, applied pressure for it, yet said nothing when capital was being siphoned out of the country.”
Mansur accused the groups of failing to oppose money laundering or advise the government against policies that weakened financial discipline. “They did not protest. They did not speak. That kind of behaviour does not strengthen democracy,” he said.
The governor urged business associations to adopt a more professional and principled role in economic governance, arguing that their silence during periods of policy mismanagement had contributed to systemic vulnerabilities in the banking sector.
Ahsan also indicated that interest rates on bank loans are unlikely to return to the 6–9 percent range.
At the roundtable organised by the International Chamber of Commerce, Bangladesh, he said: “Economic development and the country’s graduation from the Least Developed Country status must proceed together.
“For long-term growth, we cannot sacrifice major benefits for minor ones.”
He recalled that in April 2020, Finance Minister AHM Mustafa Kamal, during a meeting with business leaders, set the maximum bank loan interest rate at 9 percent, a decision which drew criticism for the participation of then-governor Fazle Kabir.
Due to high inflation and IMF pressure, Bangladesh Bank began raising interest rate caps in late 2023.
After taking office in August 2024, Ahsan increased the ceiling and later raised the policy rate to 10 percent, pushing loan interest rates to 15–16 percent.
“We do not want puppet organisations; we want professional business groups that tell the truth. Democracy works this way, otherwise it does not,” Mansur said.
Responding to complaints from businesses that current interest rates are high, he said: “Yes, interest rates are high by Bangladesh standards, but before 2020, they were higher.
“$20 billion has been illicitly transferred, non-performing loans have increased, and deposit growth fell from 11 to 6 percent before recovering.
“Once governance improves, monitoring strengthens, and confidence rises, interest rates will come down.”
Ahsan also rejected comparisons of Bangladesh with Somalia, South Sudan, or Afghanistan, calling LDC graduation a historic inevitability.
Stressing independence from political interference, he said the central bank is committed to rebuilding depositor confidence and creating a strong, autonomous financial system.
