No liquidity shortage in banking sector, says BB governor

FE Report | Published: December 01, 2018 09:57:00 | Updated: December 05, 2018 10:32:51

A file photo of Bangladesh Bank Governor Fazle Kabir (Collected)

Bangladesh Bank (BB) Governor Fazle Kabir has said the banking industry is now on stable footing as there is no liquidity shortage in this sector at this moment.

"The banking industry in Bangladesh, at this stage, is on very stable footing; there is no liquidity problem. Rather, it (liquidity) is somewhat excessive now, and in the market, we brought that excess liquidity for the stability of the industry," he said.

The central bank governor made the remarks while speaking at the 'Graduation Ceremony for Certified Expert Bankers' organised by the Bangladesh Institute of Bank Management (BIBM) at its auditorium in the city on Thursday night.

Chaired by BIBM director general Dr Toufic Ahmad Choudhury, the event was also addressed by Association of Bankers, Bangladesh (ABB) general secretary Md Arfan Ali, BIBM certification programme director and coordinator Dr Shah Md Ahsan Habib, and Moody's Analytics executive director Ari Lehavi.

About non performing loans (NPLs) in the banking sector, BB Governor Fazle Kabir said, "There may be a little bit concern about some NPLs, but these aren't that problematic for the banks as the country's economy has been trebled since 2009."

He noted that the size of the country's economy was only US$ 80 to $90 billion in 2009 that reached over $280 billion while export has become double and foreign exchange reserve also trebles in the meantime.

Still, there is enough room for improvements in governance of the banking sector which is a part of spontaneous culture, said Mr Kabir, also the chairman of BIBM governing board.

Addressing the certified expert bankers at the programme, he said the certification courses dealing with specific banking issues will help capacity building of bankers and their respective banks.

At the event, the BIBM awarded certificates to graduates of courses, including Certified Expert in Risk Management (CERM), Certified Expert in Credit Management (CECM), and Certified Expert in Trade Services (CETS).

It also launched two new courses for the bankers at the programme -- Certified Expert in E-Banking (CEEB) and Certified Expert in Anti-Money Laundering and Financial Crime (CEAF).

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