We thank the government for not caving in to the shareholders' demand to pump more money into Farmers Bank and instead convincing the bank to transfer 60 percent of its shares to four state-owned banks and the Investment Corporation of Bangladesh. The move is better than simply pouring more state funds to a private bank ailed by the common afflictions that have affected the performance of some newly established private banks, where there is little chance of recovery of the bad loans. It would also ensure that the depositors' money is safeguarded.

However, a fundamental question still remains. What about reforming the bad management practices at the Farmers Bank, as well as the public banks whose performance in certain cases has been pathetic? And shouldn't the government call to account those responsible for bringing the Farmers Bank to such a pass? When we are talking about more than a thousand crore taka of public money being injected to buy the 60 percent stake of Farmers Bank, are we doing it with reform in mind? This issue assumes more relevance given that under the new dispensation the bank will acquire the character of a state-owned bank; and one knows only too well how some of these banks have fared in recent times. Nobody should be allowed to get away with the idea that public money is there to be whittled away with impunity.

Unless pragmatic steps are taken to ensure that the bank's mismanagement and lax financial discipline are addressed, one cannot be optimistic that financial scams in this bank will not recur somewhere down the line. And that is where our worry lies.