Bangladesh’s financial sector has not met expectations due to persistent governance failures, ineffective regulatory enforcement, and delayed reforms, despite significant growth in the wider economy, according to Bangladesh Bank Governor Ahsan H Mansur. He expressed disappointment in the sector’s performance, attributing it to unresolved structural weaknesses.
Speaking at the Mastercard Excellence Awards 2025 ceremony at the Radisson Blu Water Garden Hotel in Dhaka, the governor highlighted that 18 institutions were honored with a total of 33 awards across 19 categories for their contributions to innovation, financial inclusion, and digital transformation in the 2024-25 fiscal year.
Mansur noted that although the sector appears well-regulated on the surface, underlying irregularities persist due to weak enforcement. Drawing on a local saying that conveys being tough externally but soft internally, he emphasized a gap between regulatory standards and operational practice.
He emphasized the need for substantial reforms to enhance financial governance and address systemic inefficiencies, pointing out that despite Bangladesh’s economy being comparable in size to Singapore’s, the financial sector remains relatively constrained.
While acknowledging recent initiatives by the central bank, such as simplifying card issuance processes and resolving issues related to purchasing international airline tickets with credit cards, Mansur stressed the necessity for more significant reforms to combat corruption, asset misallocation, and regulatory lapses.
Gautam Agarwal, President of Mastercard South Asia, highlighted Bangladesh’s ongoing financial evolution despite challenges. He mentioned the country’s large number of active mobile financial service accounts, high internet usage rates, and substantial annual remittance inflow.
Agarwal underscored the prevalent cash-based transactions in Bangladesh as a hindrance to digitalization, comparing it to India’s successful transition to digital transactions. He expressed optimism about Bangladesh’s potential for a similar transformation.
At the awards ceremony, Mutual Trust Bank and Eastern Bank were the top winners, securing awards in four categories each. Several other banks received recognition in multiple categories, with Mastercard emphasizing its commitment to financial inclusion and card services during its 13 years of operation in Bangladesh.
The event, themed “Inspired by Future,” also highlighted Mastercard’s efforts in Bangladesh, including launching new products and providing cyber security solutions that have prevented millions of dollars in cyber threats. Notable attendees included senior officials from banks, fintech organizations, the diplomatic community, and corporate executives.