Cenbank policies will lead to liquidity crisis in banks, dry up investment: BCI

The central bank's existing policies will result in a liquidity crisis in banks and no new investments will come in, according to the Bangladesh Chamber of Industries (BCI).

"Banks are encouraged to invest in bonds due to some policies of the Bangladesh Bank. As a result, there will be a liquidity crisis in banks. New investments will not come in and unemployment rates will increase," BCI President Anwar-ul Alam Chowdhury Parvez said during a meeting with the Industries Minister Nurul Majid Mahmud Humayun on Thursday.

"It is very important to save our existing industries," he said, according to a press release.

Currently, the maximum investment rate in bonds is above 12%, and the lending rate of banks is also above 12%. As a result, banks are now showing more interest in investing in government treasury bonds. 

Stating that the country's industrial sector is going through a transitional period, the BCI president said, "No industrial company in the country is able to operate at full capacity.

"Sales of all companies have dropped due to high inflation, low gas pressure, high loan interest rates, and all together, the country is facing a tough challenge."

Electricity and gas prices were hiked on the pretext of ensuring uninterrupted energy supply and rising international market prices, he alleged.

"Currently, fuel prices in the international market have come down a lot, but I hear that electricity and gas prices will be hiked again," he added.

Anwar-ul Alam said, "The industrial sector of the country is suffering losses due to various policies of the National Board of Revenue (NBR) which has made business management difficult."

The industry minister said that a meeting will be held soon with the participation of the relevant parties to address these challenges.