Dhaka: Dr. Anisuzzaman Chowdhury, Special Assistant to the Chief Adviser, today emphasized the necessity for coordination between monetary and fiscal policy to ensure the overall macroeconomic stability of the country. He stressed the importance of integrating policies to facilitate reforms in the financial sector.
According to Bangladesh Sangbad Sangstha, Dr. Chowdhury made these remarks during a seminar titled ‘Current Challenges in the Banking Sector: Borrowers’ Perspective,’ organized by the Dhaka Chamber of Commerce and Industry (DCCI) at the DCCI Auditorium in Motijheel. He highlighted the responsibility of both borrowers and lenders in the financial sector to be responsive, noting that the development of the informal sector could be hindered without protection of the formal sector.
Dr. Chowdhury suggested that banks in favorable condition could consider reducing interest rates to alleviate pressure on borrowers, particularly small and medium-sized enterprises (SMEs). Meanwhile, DCCI President Taskeen
Ahmed addressed the surge in non-performing loans (NPLs), which have reached Taka 4.2 lakh crore ($35 billion) by mid-2025, accounting for over 24% of total outstanding loans. This increase poses a threat to financial stability and investor confidence.
Ahmed proposed a coordinated policy response that links monetary tools with fiscal strategies to rebuild confidence, stimulate credit flow, and support business revival. He further recommended a six-month extension in the current loan classification timeline to support business recovery strategies without the risk of default labeling.
Ashraf Ahmed, former president and current Director of DCCI, presented a keynote paper discussing several economic challenges, including currency devaluation, import restrictions, and high inflation, which have led to increased interest rates from 9% to around 14% in 2025. This rise will result in an additional Taka 1.39 trillion in interest payments for the private sector.
Dr. Md. Ezazul Islam, Executive Director of the Moneta
ry Policy Department at Bangladesh Bank, noted that certain banks have come under family control since 2014-15, causing instability. However, a political changeover last year has helped restore confidence among entrepreneurs and borrowers due to the central bank’s initiatives to stabilize forex reserves and adopt market-based exchange rates.
Further insights were provided by Hossain Khaled, Abdul Hai Sarker, Fazle Shamim Ehsan, and Sohana Rouf Chowdhury, who all highlighted the impacts of financial instability on SMEs and urged for policy reforms. Mati Ul Hasan of Mercantile Bank PLC suggested forming asset management companies under PPP initiatives to recover non-performing loans, while Sohana Rouf Chowdhury emphasized the need for extending repayment periods and supporting local investors in manufacturing electric vehicles. DCCI Senior Vice President Razeev H Chowdhury and Vice President Md. Salem Sulaiman also attended the seminar.