Raising savings certificate interest rates will hurt banks: Finance adviser

Finance Adviser Salehuddin Ahmed has said that increasing the interest rate on savings certificates would discourage people from depositing money in banks, affecting the banking sector's liquidity.

"If the profit rate of savings certificates is increased, everyone will buy savings certificates and not keep money in banks. Banks also have to maintain liquidity. A balance is needed. If savings certificates are sold, where will the banks get money from?" he told reporters following a meeting with government officials at the Nabinagar Upazila in Brahmanbaria yesterday.

Referring to the state of the banking sector, Salehuddin said the Bangladesh Bank was attempting to rehabilitate banks that are in trouble.

"Islami Bank is an example of this. Confidence is returning to the bank. A Bank Resolution Act has also been enacted. The first condition is that the government is committed to returning money to depositors. No one's money will be lost — it might take a little time, as many people have taken money and left. Such incidents have not happened in any other country in the world," he said.

Regarding the unrest at the National Board of Revenue (NBR), he said efforts are underway to resolve the issue. "We will do whatever is necessary through discussions. A powerful five-member committee has also been formed."

The adviser further said that the government is trying to simplify the investment process for foreign investors. "We are ensuring that they do not have to go to 10–12 places for business. We are trying to centralise all types of clearances."

Deputy Commissioner of Brahmanbaria Mohammad Didarul Alam, Nabinagar Upazila Nirbahi Officer Rajib Chowdhury, and Nabinagar Circle Additional Superintendent of Police Pias Basak, among others, were present during the event.