They also want comprehensive reforms within Bangladesh’s banking sector
US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, on April 2, 2025. Photo: Carlos Barria | Reuters
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US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, on April 2, 2025. Photo: Carlos Barria | Reuters
Experts have called on the government and organisations such as the International Chamber of Commerce (ICC) and the World Trade Organization (WTO) to proactively address the potential fallout from US tariffs.
They have also emphasised the critical need for comprehensive reforms within Bangladesh’s banking sector.
The experts from banking, financial and public sectors came up with the observations at a dialogue titled “Global Financial Trends and Reforms: Implications for Bangladesh” organised by the International Chamber of Commerce, Bangladesh (ICCB) in a city hotel today.
The discussions took place against a backdrop of evolving global financial trends, including possible pressures stemming from US tariffs and the stark realities highlighted in the World Bank’s recent Bangladesh development update.
ICC Bangladesh President Mahbubur Rahman warned that the full implementation of additional US tariffs could severely strain the nation’s banking system by diminishing export earnings, tightening the availability of foreign currency, and increasing non-performing loans (NPLs), particularly in sectors heavily reliant on trade.
“It is therefore imperative for Bangladesh to adopt resilient financial strategies and regulatory reforms that safeguard economic stability in the face of these external shocks,” he said.
ICC Bangladesh Vice President AK Azad urged the International Chamber and the WTO to give attention to the aftermath of the implementation of US tariffs on countries like Bangladesh.
He also underscored the need for ICC and WTO interference for the settlement of insurance claims for the damaged factories during political turmoil.
Florian Witt, chair of the ICC Global Banking Commission, in his keynote, echoed the call for transformative action within Bangladesh’s banking sector. He specifically advocated for the revitalisation of state-owned banks through strategic recapitalisation and aggressive NPL reduction.
Witt also proposed a framework that encourages bank mergers to create larger, more resilient banking groups. Addressing the challenges faced by Islamic and troubled private sector banks, he emphasised the necessity of thorough forensic audits to inform potential mergers, recapitalisation efforts, and the bolstering of Tier-1 capital.
A key recommendation included the adoption of international standards for NPL categorisation. While acknowledging potential challenges, Witt also offered a forward-looking perspective, suggesting that the future of banking lies significantly in the Global South.
Bangladesh Bank Deputy Governor Md Zakir Hossain Chowdhury said the central bank has taken a lot of reform activities recently, but the time has not come yet to evaluate the result of the reform.
Abdul Hai Sarker, chairman of the Bangladesh Association of Banks and Chairman of Dhaka Bank, said if all the stakeholders work together, Bangladesh can cope with the changes coming.
Selim RF Hussain, chairman of the Association of Bankers Bangladesh (ABB) and managing director and CEO of BRAC Bank, said Globalisation 2.0 is going to be very different from what it was earlier, as many geopolitical changes are happening across the world. “There is something that cannot be influenced by small countries like Bangladesh; they can only try to respond to it.”
Enamul Huque, managing director of Standard Chartered Bank Bangladesh, said Bangladesh should look for time-befitting ways to cope with the global economic situation challenged by the tariff imposed by the Trump administration.
Md Mahbub Ur Rahman, CEO of HSBC Bank, said the global supply chain is going through changes, including notable growth in South-South trading. “Global context is shifting, the market is being shifted, and so is the supply chain.”
Shah Md Ahsan Habib, professor of Bangladesh Institute of Bank Management, and Bidyut Kumar Saha, lead investment officer, Private Sector Operations Department of Bangladesh Resident Mission, Asian Development Bank, also spoke, among others.
