Dr. Salehuddin Ahmed is widely regarded as one of the most influential Governors of the Bangladesh Bank. Serving as the 9th Governor from May 1, 2005, to April 30, 2009, Dr. Ahmed played a pivotal role in modernizing the country’s central banking system and strengthening the financial sector’s resilience. His leadership was marked by the successful implementation of major reforms, particularly the adoption of BASEL-2 norms, strengthening the capital structure, and effectively mitigating the impact of the Global Financial Crisis of 2007–2008. Dr. Ahmed’s career, spanning academia, civil service, and banking, reflects his deep expertise in macroeconomics and his commitment to fostering sustainable economic growth.
Table of Contents
Early Life and Education
Dr. Salehuddin Ahmed was born and raised in Bangladesh, where his academic brilliance became evident from an early age. His educational journey began at some of the most prestigious institutions in the country:
- SSC (Matriculation): Dhaka Collegiate School (1963) – 1st Division
- HSC (Intermediate): Dhaka College (1965) – 1st Division
Dr. Ahmed’s strong foundation in science gradually shifted towards a focus on economics, where he would later make his mark:
- BA (Honours) in Economics: University of Dhaka (1968)
- MA in Economics: University of Dhaka (1969) – 1st Class, 1st Position
His academic excellence earned him opportunities to pursue higher studies abroad:
- MA in Economics: McMaster University, Canada (1974)
- Ph.D. in Macroeconomics: McMaster University, Canada (1978)
This strong academic background laid the foundation for his remarkable career in economics and public service.
Professional Career
Early Academic and Civil Service Career
Dr. Ahmed began his professional journey as a Lecturer in Economics at the University of Dhaka in 1970. His career path took a significant turn when he joined the Civil Service of Pakistan in 1971. However, after the independence of Bangladesh, he returned to his academic roots and resumed his role as a Lecturer at the University of Dhaka in 1972.
Over the years, Dr. Ahmed held several important administrative positions in Bangladesh, including:
- Sub-Divisional Officer (SDO) of Pirojpur – where he gained hands-on experience in local governance and rural development.
- National Foundation for Human Resource Development – Contributed to shaping human capital development strategies.
- Centre on Integrated Rural Development for Asia and the Pacific (CIRDAP) – Served as the Head of Research, focusing on regional development and policy analysis.
Leadership in Rural Development and Microfinance
Dr. Ahmed’s expertise in rural development and microfinance became evident during his tenure as:
- Director General – Bangladesh Academy for Rural Development (BARD), Cumilla
- Director General – NGO Affairs Bureau, Office of the Prime Minister
Between 1996 and 2005, Dr. Ahmed served as the Managing Director of Palli Karma Sahayak Foundation (PKSF) – the apex funding agency for microcredit operations in Bangladesh. Under his leadership, PKSF expanded its outreach and impact, providing financial access to millions of underserved rural communities.
Tenure as Governor of Bangladesh Bank
Dr. Salehuddin Ahmed’s appointment as the 9th Governor of Bangladesh Bank in 2005 marked a transformative period for the country’s financial sector. His tenure was characterized by strategic reforms, modernization, and resilience-building measures that strengthened Bangladesh’s banking infrastructure.
Key Achievements and Reforms
- Implementation of BASEL-2 Norms
Dr. Ahmed oversaw the successful adoption of BASEL-2 norms, enhancing the risk management framework and capital adequacy of Bangladeshi banks. - Strengthening Capital Structure
Under his leadership, Bangladesh Bank doubled the equity capital of banks, improving financial stability and the ability to absorb economic shocks. - Handling the Global Financial Crisis (2007–2008)
Dr. Ahmed’s strategic policies shielded Bangladesh’s banking sector from the full impact of the global financial meltdown, ensuring continued financial stability. - Central Bank Strengthening Project
Funded by the World Bank, this project led to major improvements in:- Credit Information Bureau (CIB) – Enhanced credit risk management and transparency.
- Foreign Exchange Management – Modernized foreign exchange operations.
- Currency Management – Improved cash flow and circulation.
- Inspection and Supervision – Strengthened regulatory oversight.
- Islamic Banking and Financial Inclusion
Dr. Ahmed introduced policies to support the growth of Islamic banking, providing diverse financial options to the population. He also promoted financial inclusion initiatives, ensuring broader access to banking services. - Introduction of Modern Banking Tools
His tenure saw the launch of credit cards and ATMs, making banking services more accessible and convenient for the general public. - Introduction of Half-Yearly Monetary Policy
Dr. Ahmed introduced the practice of announcing monetary policy on a half-yearly basis, improving transparency and market confidence.
Post-Governorship and Legacy
Following his tenure as Governor, Dr. Ahmed remained an influential figure in economic policy and academia. His insights and strategic foresight have continued to shape Bangladesh’s financial sector and economic landscape. He has been a vocal advocate for sustainable economic growth, financial stability, and inclusive development.
Contributions to Economic Research and Publications
Dr. Ahmed has authored numerous research papers and policy articles on macroeconomics, rural development, and financial inclusion. His work has been widely cited in academic and policy circles, reflecting his deep understanding of Bangladesh’s economic challenges and opportunities.
Philosophy and Leadership Style
Dr. Ahmed’s leadership style was characterized by a balanced approach to innovation and risk management. He believed in:
✅ Building a strong institutional framework
✅ Promoting financial discipline
✅ Enhancing stakeholder confidence through transparent communication
His ability to combine academic insight with practical governance made him a highly effective central banker and policy leader.
Conclusion
Dr. Salehuddin Ahmed’s tenure as the 9th Governor of Bangladesh Bank stands out as a period of remarkable progress and resilience in Bangladesh’s banking sector. His strategic reforms, effective crisis management, and commitment to financial inclusion have left a lasting legacy. Dr. Ahmed’s contributions to academia, public service, and financial policy continue to influence Bangladesh’s economic trajectory, cementing his place as one of the most distinguished figures in the country’s financial history.