Good governance in banking sector stressed at BUILD FSDWC meeting

Deputy Governor of Bangladesh Bank Abu Farah Md Nasser stressed the need for taking proper, visible and fast actions to ensure good governance in the banking sector to address monumental challenges faced by the sector.

The deputy governor was addressing the 11th Financial Sector Development Working Committee (FSDWC) meeting virtually on Wednesday. Business Initiative Leading Development (BUILD) organised the event.

Barrister Sameer Sattar, president of Dhaka Chamber of Commerce and Industry, co-chaired the meeting, reads a press release. 

The deputy governor hoped that the present situation of investment and trade will get momentum after the upcoming election and new administration will boost the confidence of the investors.

"From Bangladesh Bank, we have adopted a single exchange rate policy despite it being fixed by the ABB (Association of Bankers, Bangladesh) and BAFEDA (Bangladesh Foreign Exchange Dealers Association), we are strictly monitoring the rate. To manage the exchange rate fluctuation, the central bank is in contact with the Reserve Bank of India," he said.

The Dhaka Chamber of Commerce and Industry president stressed the importance of governance in managing non-performing loans, advocating for a swift recovery plan to revitalise the financial sector. He commended Bangladesh Bank for streamlining loan processes and facilitating easier access to financing.

The Chittagong Chamber of Commerce and Industry President Omar Hazzaz echoed the sentiments, emphasising the promotion of corporate good governance in the financial sector to gain trust and confidence. He commended the research efforts of Business Initiative Leading Development in this regard.

Business Initiative Leading Development CEO Ferdaus Ara Begum presented a comprehensive policy paper on the Export Facilitation Pre-Financing Facility. The paper recommended an increase in the EFPF loan ceiling to Tk30,000 crore based on sector demands. Specific recommendations for the RMG and leather sectors were made, including an increase in loan ceilings and the introduction of online-based application services for the Export Facilitation Pre-Financing Facility.

Prof Dr Mahmood Osman Imam from Dhaka University advocated for the temporary filtering of development projects and restrictions on luxury imports to contain inflationary pressure. He suggested alternative funding sources for the Export Facilitation Pre-Financing Facility.

The Institute of Chartered Accountants of Bangladesh Vice President Md Yasin Miah emphasised the necessity of good governance and accountability in attracting deposits, investments, and conducting global business.