DHAKA, Mar 14, 2017 (BSS) - Bangladesh Bank Governor Fazle Kabir said government borrowing is lower now which is an opportunity for the private sector to get more access to finance.
He also said foreign remittance is more that 16 percent lower than the same period of last year which is a matter of concern and the central bank is working hard to encourage non-resident Bangladeshis (NRBs) to send remittances through proper channels.
The governor said this when the Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI) led by its president Abul Kasem Khan called on him at BB here today.
The governor said young generation needs to be encouraged to come up with innovative entrepreneurship mostly in manufacturing sector rather than trading. Skill development and training are also more important for new entrepreneurs, he said.
Fazle Kabir also called for bringing all banks under automation and trusted cyber security system. Bangladesh Bank is closely monitoring banks' automation and cyber security measures on a regular basis, he added.
During the meeting, DCCI president Abul Kasem Khan said the central bank can utilize the foreign exchange reserve for wide ranging infrastructure development work of the country.
He said huge infrastructure investment deficit is hindering the accelerated growth potentials of Bangladesh.
About the Non Performing Loan (NPL), he said NPL is at alarming state and stood at Tk. 62,172 crore as on December 2016. In order to reduce the interest burden on SMEs, good borrowers and ensure healthy financial system, the NPL needs to be well managed, he opined.
For export diversity and expansion, he suggested extending the Export Development Fund (EDF) beneficiary network. He said low cost industry investment fund and SDG implementation fund need to be created for private sector-SDG adaptation.
He said the weighted average deposit rate of scheduled banks downed to 5.22 percent in December 2016. But the lending rate for SMEs is around 12-14 percent where as weighted average lending rate is around 9.9 percent. He proposed for reducing this gap of interest rate.
Deputy Governor of Bangladesh Bank S.K. Sur Chowdhury, DCCI Senior Vice President Kamrul Islam, DCCI Directors Khandakar Abdul Muktadir, K. Atique-e-Rabbani, KMN Manjurul Hoque, Riyadh Hossain and Secretary General AHM Rezaul Kabir also spoke on the occasion.
Source: Bangladesh Sangbad Sangstha (BSS)