BB should bar non-compliant SoCBs from issuing new loans, says CRI Vice Chairman Sadiq Ahmed
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Bangladesh Bank should prohibit state-owned commercial banks (SoCBs) from issuing new loans unless they comply with BASEL-3 standards and significantly reduce non-performing loans, said Dr Sadiq Ahmed, vice chairman at Policy Research Institute (PRI), on Thursday.
Allowing the SoCBs to lend is basically permitting them to create more non-performing loans, he said at a book-launching event organised by Bangladesh Institute of Development Studies (BIDS) at its office in Dhaka city. The book “Bangladesh Stabilizing The Macroeconomy”, authored by Dr Sadiq Ahmed, was launched at the event.
He also urged the government to fully corporratise or privatise SOCBs bring them into compliance.
Economic Affairs Advisor to Prime Minister Dr Mashiur Rahman and former Planning Minister Abdul Mannan also spoke at event, which was moderated by BIDS Director General Binayak Sen.