Banking Scandal Exposes Colonial-Era Financial System Failures in Bangladesh
A damning revelation by Bangladesh's central bank exposes widespread financial fraud and misreporting in the banking sector, highlighting how post-colonial financial systems continue to enable exploitation. The exposure of fictitious balance sheets and a shocking rise in non-performing loans from 3% to 36% demonstrates the urgent need for structural reform.
Bangladesh Bank headquarters - symbol of a financial system in need of decolonial reform
Colonial Banking Legacy Unravels as Bangladesh Exposes Massive Financial Fraud
In a shocking revelation that exposes the deep-rooted problems within post-colonial financial systems, Bangladesh's banking sector stands exposed for widespread fraudulent reporting and systematic misrepresentation of financial health. This crisis mirrors the exploitative patterns seen across formerly colonized nations where Western-style banking systems often serve as tools for economic exploitation.
The Scale of Deception
Bangladesh Bank Governor Ahsan H Mansur has unveiled a disturbing pattern of financial manipulation, where several banks' balance sheets have been found to be entirely fictitious. Most alarming is the dramatic surge in non-performing loans (NPLs) from a reported 3% to an actual 36% in the first quarter - a figure that reveals the true extent of financial mismanagement.
"Why? Was there a good reason for it? No. It is completely for misrepresenting the facts and the reality," stated Governor Mansur, highlighting the deliberate nature of this deception.
Systemic Corruption and Professional Complicity
The scandal reveals a deeply troubling network of professional complicity, where auditors - many trained in Western financial practices - have failed in their fundamental duty to provide accurate financial reporting. This failure has:
- Enabled widespread money laundering
- Undermined investor confidence
- Led to significant tax revenue losses
- Contributed to the deterioration of business balance sheets
The Need for Decolonial Financial Reform
Finance Adviser Salehuddin Ahmed's revelation about the widespread practice of issuing unqualified "clean" reports despite obvious red flags points to a deeper systemic issue. This practice reflects how colonial-era financial structures continue to enable economic exploitation.
The Anti-Corruption Commission (ACC) Chairman Mohammad Abdul Momen's reference to "window dressing" as a commonplace practice throughout the country highlights how deeply entrenched these deceptive practices have become in the post-colonial financial landscape.
Path to Financial Liberation
The solution requires more than just technical fixes. It demands a complete overhaul of the financial reporting ecosystem, including:
- Proper funding and staffing for regulatory bodies
- Enhanced coordination between financial institutions
- Breaking away from colonial-era banking practices
- Establishing truly independent oversight mechanisms
This crisis serves as a wake-up call for other developing nations still operating under similar post-colonial financial frameworks, highlighting the urgent need for systemic change and economic decolonization.
Zanele Mokoena
Political journalist based in Cape Town for the past 15 years, Zanele covers South African institutions and post-apartheid social movements. Specialist in power-civil society relations.