Dhaka, Feb 1 (NationPress) With only two weeks remaining in its tenure, the interim administration has not yet approved two pivotal banking reform laws that the Bangladesh Bank claims are crucial for enhancing the regulatory framework of the nation's financial system, according to local media reports on Sunday.

The laws in question focus on increasing the autonomy of the Bangladesh Bank (BB) and revising the ownership and governance structure of banks.

These initiatives were promised as part of the reform agenda by the interim government following the uprising in July 2024, as reported by the prominent Bangladeshi publication, The Daily Star.

The International Monetary Fund (IMF) has also been a strong advocate for granting more independence to the central bank, offering technical assistance for drafting the proposed changes under its $5.5 billion loan program.

Despite these efforts, both legislative drafts remain stalled at the finance ministry. The Bangladesh Bank submitted the proposals several months ago and has consistently urged the government to pass them before the upcoming national elections on February 12.

To date, the interim government has only enacted two banking-related laws: the Bank Resolution Ordinance and the Deposit Insurance Ordinance.

Officials from the central bank report that progress on the outstanding drafts has stagnated, including amendments to the Bangladesh Bank Order of 1972 and the Bank Company Act.

In a press release issued on Saturday after its Article IV consultations, the IMF warned that delays in banking and fiscal reforms could negatively impact economic growth, increase inflation, and elevate macro-financial risks.

During a public event last week, Bangladesh Bank Governor Ahsan H. Mansur also expressed concerns over these delays, indicating that it would be challenging to enact the laws post-election, according to local reports.

As per officials, the original draft amendment to the Bangladesh Bank Order suggested eliminating bureaucrats from the BB board, which currently includes three government officials. However, after pushback from the finance ministry, the proposal was modified to allow one bureaucrat instead of three.

The amendment further aims to elevate the Bangladesh Bank governor to a ministerial rank and requires the governor to take an oath before the chief justice. Despite these adjustments, the proposal is still awaiting approval.

The second significant reform pending involves changes to the Bank Company Act. This draft was approved by the BB board in October of the previous year and sent to the finance ministry but has seen no progress since.

As the interim administration's time runs out, officials at the central bank fear that failing to pass the remaining reforms before the elections could undermine efforts to bolster financial sector governance and regulatory independence.