Loading...
The Financial Express

BB directives to bankers

Ensure compliance, good governance in banking

Macroeconomic situation to rebound from early next year, says governor


| Updated: December 05, 2022 16:20:28


Ensure compliance, good governance in banking

Ensure compliance and good governance in discharging the banking jobs, the central bank asks bankers in a package direction amid reports on massive loan irregularities.

While spelling out the dos, especially at this odd time, Bangladesh Bank (BB) governor Abdur Rouf Talukder Sunday assured them that the central bank was ready to extend all-out support to that end.

The governor made the advice in a meeting with the high-ups of the country's commercial banks at the BB headquarters.

"Do your jobs maintaining compliance and transparency. We (BB) will provide you with all necessary policy supports for doing so," a meeting source quoted the governor as saying.

The instructions to the bankers come at a time when the banking sector is under the spotlight following many recent media reports of loan-related irregularities.

Presenting some statistics, the meeting source said the governor assured them that the macroeconomic situation of the country would start rebounding from early next year as both export and remittance have started picking up after a downturn.

A top executive of a commercial bank said the governor called upon them to pay more attention to increasing credit flow into agriculture to ensure food security in the coming days when there is a global concern of possible food insecurity.

He said the governor informed that the central bank was conducting investigation into the recent irregularities in the banking sector that hit the headlines.

Simultaneously, the officials concerned will audit more banks in the coming days to assess the overall situation.

"The governor asked us not to comprise the issue of compliance in delivering our banking services. If the bank needs any policy support, the BB will do that," he told the FE, on condition of anonymity.

The top notch of another bank said the governor called upon them to pay more attention on increasing credit flow into agriculture to ensure food security in the coming days when there is a global concern of possible food insecurity.

Talking about liquidity, he said there are refinancing schemes amounting to around Tk 460 billion for SMEs but only Tk 120 billion has so far been used. "The governor suggested the bankers to properly use these credits where the spread is quite good," he said.

After the meeting was over, newly appointed BB spokesperson Md. Mezbaul Hoque briefed the media, saying that the governor called upon the banks to take necessary measures so that the supply of key essentials during the holy month of Ramadan is not hampered.

He said there is a target of Tk 309 billion to be disbursed for agriculture sector but only 33 per cent of the target is achieved so far. So, the governor asked the bankers to do the necessary to reach the target.

About the reported depositor panic following recent loan-related irregularities involving a king's ransom, the BB spokesperson said, "There is no need to worry as their deposits remain well-protected."

The central banker, however, said banks were asked to make questions as less as possible while people come to deposit money amounting up to Tk 1.0 million with the banks.

[email protected]

Share if you like