Financial Transparency Reform Urged

At a high-level financial sector summit in Dhaka, the importance of transparency, accountability and institutional integrity in restoring confidence in the country’s financial system was strongly emphasised by Amir Khasru Mahmud Chowdhury. He stated that rebuilding public trust in governance and financial reporting has become one of the most critical challenges for the future stability of the national economy.

Speaking as the chief guest at the Financial Accounting and Reporting (FAR) Summit 2026, held on Wednesday at the Sonargaon Hotel in the capital, the minister warned that weaknesses in regulatory enforcement and oversight have significantly undermined the financial sector’s credibility.

The summit, titled “Trustworthy Financial Reporting: What Really Matters”, was organised by the Financial Reporting Council (FRC), in collaboration with the Institute of Chartered Accountants of Bangladesh (ICAB) and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

The minister noted that several regulatory institutions had become largely ineffective over time, leading to serious disruptions in auditing standards, financial reporting quality and supervisory mechanisms. He added that prolonged governance weaknesses had left key institutions structurally fragile, placing the economy at a critical crossroads.

Expressing concern over instability in both the banking sector and capital market, he said that a number of companies had entered the stock market based on misleading or falsified financial statements. This, he argued, has discouraged genuinely strong firms from participating in a fair and competitive market environment.

He further highlighted the importance of accurate asset valuation and market-based pricing mechanisms, noting that existing structural deficiencies had contributed to significant capital shortages in banks and the wider private sector. He also identified non-performing loans, capital flight and collusion between bank owners and management as major contributing factors to the crisis.

According to him, banks—despite being entrusted with public deposits—have long been operated in a manner resembling privately controlled entities. He stressed the need to eliminate conflicts of interest and restore discipline and public confidence in the financial system.

Calling for stronger professional ethics, he urged members of ICAB and ICMAB to reinforce self-regulation and uphold strict accountability standards. He emphasised that the responsibility for maintaining credible financial reporting ultimately lies with accountants and auditors themselves.

Reflecting on past governance practices, he cited an example where a private sector body was once entrusted with issuing utilisation certificates successfully, suggesting that professional self-regulation can be effective when properly structured.

The minister also noted growing international interest in Bangladesh’s economy despite ongoing challenges. He mentioned that major investment firms, including JP Morgan Chase and institutions based in London and Hong Kong, have shown interest in investing in the country. However, he warned that without credible audited financial statements and compliance with international accounting standards, attracting sustainable foreign investment would be impossible.

A summary of key participants is presented below:

The summit also featured technical sessions focusing on improving the quality of financial statements and strengthening external auditing and assurance practices in line with international standards. Senior government officials, professional accountants, auditors, actuaries and business leaders attended the event.