Elsewhere elsewhere

The point of having a market economy is that prices are not centrally set

The chief of the tax administration is trying to set prices for banks. This is not a clever way of running a banking system.

Both the collection of taxes, and a functioning and profitable banking system are necessary for the economy to thrive, but we shouldn’t be mixing and matching the two sets of expertise. For what does the taxman know about the correct pricing structure or banking?

Mosharraf Hossain Bhuiyan made the insistence at a news conference with the MCCI. His point being that corporate taxation breaks have recently been introduced. Those banks which charge excessive interest on loans to business won’t get them. So he says at least, or perhaps urges.

8 comments on “Elsewhere elsewhere

  1. I’m just waiting for someone to say this is neo colonialist, white economics. Economics there is different.

  2. “Economics there is different.”

    Western, Educated, Industrialized, Rich, and Democratic. Who knows?

  3. If you need every ironic comment pointing out and still don’t get it then the internet is clearly not for you.

  4. @ Tim
    Your article makes a sweeping assumption – thatr if the bank cannot charge enough, the loan will not be made. We *know* that this was not true while Gordon Brown was dictating to British Banks; I know that this was not true for Eastern European banks in the 1980s and for many of them in the early 1990s.
    I have no personal knowledge of Bangladesh but the media stress the virulent political fighting between the two widows so I wonder how politicised is the economy? Will the banks finance dud companies and turn down good ones based on politics?

  5. I do mention that politicisation in the piece…..in passing to be sure, but then I am writing in a local paper….

  6. @ Tim
    Yes, but saying that Bangladeshi banks need a government subsidy to keep going is not the same as telling me whether they are handing out loans based on the political views of the customer. When Finacials got dumped on me in 1984, BoS was still deemed “the Jacobite Bank” and RBS the anti-Jacobite one.

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