Bank interest rates can't be reduced immediately: Finance adviser
The finance adviser also noted that inflation cannot be brought down by the government alone without the cooperation of businesspeople and the wider community.
Bank interest rates cannot be reduced at this moment, Finance Adviser Dr Salehuddin Ahmed has said, citing prevailing economic realities.
"The banking sector has become relatively stable, but reducing interest rates at this stage remains difficult," he said, addressing the publication ceremony of the seventh edition (2024) of the Banking Almanac at the CIRDAP auditorium in the capital today (10 January).
Currently, the average interest rate is 12-13%.
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The finance adviser also noted that inflation cannot be brought down by the government alone without the cooperation of businesspeople and the wider community.
"I hope I will not fail as a finance adviser. The biggest challenge is to move Bangladesh forward quickly," he said, expressing optimism about his role in the interim government.
'Bangladesh focuses on sustainable development, not Singapore model'
Salehuddin further said Bangladesh's government aims to build a strong and sustainable economy through patience and collective effort, rather than attempting to replicate Singapore's model.
He described the country's economy as stable and stressed that policy decisions should prioritise national interest over popularity.
"It is not always possible to satisfy everyone while formulating policies, and there is always a possibility of errors. Often, there are populist demands to reduce interest or tax rates. Everyone says 'I', but no one says 'we'. Policy is not for an individual; it is for the entire nation," he said.
On current economic challenges, Salehuddin noted that they cannot be attributed to any single individual or government, but reflect a long-term development trajectory. "Bangladesh has not failed in 54 years. We have experienced ups and downs, but we continue to move forward."
He also highlighted the importance of reliable data, citing the Banking Almanac as a critical resource for banking professionals.
The launch event featured several senior officials, including Finance Secretary Md Khairuzzaman Majumder; Nazma Mobarek, secretary of the Financial Institutions Division; Bangladesh Bank Deputy Governor Nurun Nahar; and Abdul Hai Sarkar, Chairman of the Bangladesh Association of Banks (BAB) and Dhaka Bank. HSBC Bank CEO Mahbubur Rahman also spoke.
The event was presided over by economist Hossain Zillur Rahman, former caretaker government adviser and acting chairman of the Banking Almanac's Board of Editors.
Finance Secretary Khairuzzaman Majumder said economic stability has returned, with the Taka strengthening and Bangladesh Bank actively purchasing dollars to maintain balance.
Hossain Zillur Rahman advocated for 'Economic Democracy' to ensure sustainable financing and equal opportunities, while BAB Chairman Abdul Hai Sarker noted that, despite government funding, the exact reasons behind the sector's high interest rates remain unclear.
Published since 2016 with Bangladesh Bank's support, the Banking Almanac provides comprehensive data on scheduled banks and financial institutions, offering researchers, investors, and professionals detailed insights into performance and corporate governance.
The 7th edition is available in both print and digital formats (https://www.bankingalmanac.com) and can be purchased via Amazon and Rokomari.
