Banks asked to bring down default loan to tolerable level
BSS
Bangladesh Bank (BB) Governor Atiur Rahman yesterday asked banks to bring down their default loans to a tolerable level soon, reports BSS.
We need to continue our sincere efforts so the default loans would come down to a tolerable level soon, he told a programme where high BB officials and chief executives of banks and financial institutions were present. The programme was organised at the central bank headquerters to launch the BBs annual Financial Stability Report 2015.
Rahman said the central bank has already taken many steps, updated rules and regulations and technology and streamlined the monitoring system to establish discipline and ensure stability in the banking sector.
As a result, the capital base of the bank sector increased and strengthened significantly in the past five years, he said.
He advised that the countrys banking sector should be prepared to tackle spillover impact of global economic volatility as the future banking would have more integration with the global financial activities.
Banks and financial institutions (in Bangladesh) did not face any systematic risk even during the global recession because the external economic activities still remained limited and under carefull management. But, there was no scope of self-satisfaction, said the BB governor.
He said BB was continuing its efforts for building capacity and skills so it would be equipped well to tackle the spillover of risks of any volatility in the global financial market.
Already, we have started developing a coordinated monitoring system to eliminate duplicity or overlapping (in monitoring), which would also bring more stability in the financial sector, he said.
Besides, Rahman noted that the central bank developed and incorporated modern technology, framework, contingency plan and other tools to determine the potential risks and remidies of those in banking and financial sectors.
The governor, however, advised the banks and the financial institutions to be more careful and transparent in their operations to have peoples condifence and trust, which were very important for developing a healthy banking and financial sectors.
We should remember that the banks would be required to take the challenges of the fast changing business model besides the big challenges of achieving inclusive and sustainable economic growth, he said.
