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Wednesday, June 13th, 2007
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The Bangladesh Bank (BB) yesterday asked all commercial banks to increase credit flow as growth in private sector credit shrunk by 3.33 percentage point during the first four months of this calendar year.
According to the central bank, private sector credit growth was 2.75 percent during January-April period of this year compared to 6.08 percent during the same period of the previous year.

The law enforcers’ recent drive in different financial institutions and bankers’ carefulness in disbursing new loans are two main reasons behind this slow pace in credit flow, BB Governor Salehuddin Ahmed told reporters yesterday after a meeting with the chief executives of all the private commercial banks.

In the meeting, the governor discussed ways to achieve the goals announced in the proposed budget with the chief executives.

The top bank officials told the governor that they often face embarrassing situation, as the law enforcers demand various information from the banks frequently without showing any valid document.

They alleged that though the government asked the law enforcers not to harass the bankers, they (law enforcers) are visiting different banks often in the name of enquiry.

The bankers viewed that the law enforces should come through proper channels like the central bank, National Board of Revenue and Anti-Corruption Commission.

They also urged the governor to place the issue before the government high-ups immediately.

During the meeting, the governor urged the high bank officials to increase credit flow in different thrust sectors including agriculture and garment, sources said.

According to Bangladesh Bank statistics, private banks disbursed 2.9 percent of the total loans in agriculture only whereas the nationalised commercial banks disbursed the rest.

The private banks’ contribution was 9.79 percent in disbursing loans for livestock, fisheries and forestry sectors.

The chief executives of the private banks have assured the central bank of disbursing some seasonal loans to the agriculture sector, sources said.

The governor also urged the bankers to simplify the import procedure so that importers of essential commodities can import goods quickly.

The meeting also discussed several issues including recovery of bad loans and increasing use of banking instruments to prevent forgery.

Deputy governors Nazrul Huda and Ziaul Hasan Siddiqui were also present.


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Categories: Bangla, Bangladesh, Bangladesh Economy, Bangladesh News, Daily Bangladesh News, Economy, News

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