No major financial crisis, situation solvable: Governor
Bangladesh is not facing a major financial crisis, and the current situation is entirely solvable, posing no risk of a scenario similar to Sri Lanka or any other crisis-ridden country, said Bangladesh Bank Governor Ahsan H Mansur.
He made the remark as the chief guest at the announcement ceremony for the Mastercard Excellence Awards 2024, held at the Radisson Hotel in Dhaka today.
The governor said, "Our external financial sector is in a strong position. Our balance of payments situation has improved, reserves are consistently increasing, and the exchange rate has stabilised. Therefore, I do not see any risks in the external sector. Our export earnings and remittance flows from overseas workers are increasing."
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He also mentioned that the Bangladesh Bank has lifted all restrictions on opening letters of credit (LCs). The country has sufficient reserves to import essential goods.
Ahsan H Mansur further said it is not possible to fix the financial sector without addressing the political system. "Implementing full financial sector governance will take some time. The interim government may not be able to fully implement it within a short period, but we are starting the process."
The governor also mentioned that only a few banks are currently facing liquidity issues, but this will be resolved.
"Depositors will not face any problems, and the Bangladesh Bank is assuring this. To address the weaknesses of struggling banks, some significant measures may be required, but these issues will be resolved," he said.
He added that while the current deposit growth is around 7%-8%, a 15%-16% growth is necessary for the healthy functioning of banks.
Mastercard Excellence Award
Meanwhile, the winners of the Mastercard Excellence Awards 2024 have been selected for their contributions to building a strong digital economy and expanding financial inclusion.
This year, a total of 26 organisations across 17 categories have been awarded.
BRAC Bank and Eastern Bank have won awards in four categories, while Southeast Bank, Dhaka Bank, United Commercial Bank (UCB), and Mutual Trust Bank received awards in three categories. AB Bank, Al-Arafah Islami Bank, City Bank, Islami Bank Bangladesh, LankaBangla Finance, National Bank, and Pubali Bank have been awarded in two categories.
One award each was given to Standard Chartered Bank, Bank Asia, bKash, Dutch-Bangla Bank, Evercare Hospital, Grameenphone, Meena Bazar, Prime Bank, RFL Best Buy, Transcom Electronics, ShareTrip, SSL Commerz, and Bangladesh Railway's payment service Shohoz.
Syed Mohammad Kamal, country manager, Bangladesh, Mastercard, said, "Mastercard remains committed to driving digital innovation and fostering inclusive growth in the country. The company is pleased to collaborate with leading banks, fintechs and merchants as partners, who continue to play a crucial role in our combined vision of creating a robust digital financial ecosystem."
The awards were presented in recognition of the contributions of various institutions in Bangladesh's banking, payments, and fintech sectors. The event, themed "Leading by Resilience," is the sixth edition of the Mastercard Excellence Awards.
Mastercard has been organising the Excellence Awards since 2019 to acknowledge the contributions of various institutions in the financial sector.
Also present at the event as a guest of honour was Trishita Maula, acting deputy chief of mission at the US Embassy in Dhaka.
