Recovery of classified loan is major challenge in banking sector: BB

DHAKA, Feb 14, 2017 (BSS) - Bangladesh Bank (BB) Governor Fazle Kabir today said recovery of the classified loan is the major challenge in the banking sector which is likely to create a barrier to achieve the projected GDP growth.

"Classified loan witnessed around 10.34 percent (in September 2016) in the banking sector. But the rate is very high in the state-owned banks," he said while addressing as the chief guest at the inauguration ceremony of the "Banking Related Orientation Workshop-2017" at BB headquarters in the city.

Fazle Kabir said Bangladesh has set a target to achieve the GDP growth 7.2 percent in the current financial year 2016-17 (FY16).

Recovery of the classified loan would play a vital role to achieve the 8 percent GDP growth targets in future through providing the rising demand of huge finance from the loan, he added. He said BB has taken various steps including conducting a diagnostic survey on foreign currency and to find out the causes of down trend of the remittance inflow.

Two research teams of the central bank will soon visit Malaysia and Middle Eastern countries to find out the reasons of falling trend in the inflow of remittance, he added.

Among others, BB's deputy governors, president of Economic Reporters Forum (ERF) and members of ERF attended the workshop.

Source: Bangladesh Sangbad Sangstha (BSS)