The Financial Express

Contribution of private banks to economy  

| Updated: October 25, 2017 05:25:50

Contribution of private banks to economy   

PRIVATE banks are also making a substantial contribution to the economic sector of the country alongside state-owned banks. They have been playing a vital role in the economy by providing credit for businesses and at the same time collecting money as deposits from general public through different types of depository incentives. Agriculture is the main sector of our economy. According to the new GDP measurement system, it provides about 22 per cent of our GDP. But sadly as the total amount of credit increases, the portion of credit to agriculture, fishery and forestry sectors has been decreasing over the years and is reduced to nearly half at present. Industrial sector which serves as the main contributor to GDP in developed countries, is still a very weak sector here and its contribution to our GDP is only 17.79 per cent. But the sector remains to be the main recipient of credit from commercial banks. Readymade garment industries last received TK7.86 billion and TK 8.78 billion respectively from private and national commercial banks. Banks are one of the main weapons for the government for eradicating poverty by implementing different projects. As the branches of banks are available everywhere from downtown area to remotest corner of the country, the government uses these banks to provide financial benefits for the people. The private banks have adopted modern technologies to provide better service for the customers and make their activities easier. In this way, private banks are also making valuable contribution to economic development of the country alongside state-owned commercial banks.

Mahfuj Ahmed

Bachelor of Business Administration

East West University






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