Abu Sazzad :
The central bank has set a ceiling for the private-sector credit growth at 14.30 per cent for the first half of the current fiscal 2015-16 (July-December), as per the latest monetary policy statement (MPS).
Credit expansion to the private sector declined further in July from its previous month due to lower trade financing by the commercial banks.
The private sector credit growth stood at 12.96 per cent in July. Credit flow in the private sector was Tk 5,73,668.70 crore in July 2015 compared with Tk 5,07,838.40 crore during the corresponding period of the last fiscal. It was Tk 5,74,599.40 crore in June 2015 while Tk 5,07,639.90 crore in June 2014.
Actually, the business people suffer in doing business because of inadequate gas and electricity connection. Political unrest and uncertainty are another reason of short of target.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
Large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth.
The BB data showed that the year-on-year credit growth in the overall domestic sector also decreased to 10.09 per cent in July from 11.04 per cent in June, 2015.
The total credit in the domestic sector stood at Tk 7,10,934.50 crore as of July 2015 compared with Tk 6,45,788.90 crore as of July 2014. It was Tk 7,01,526.50 crore in June 2015 against Tk 6,37,906.20 crore in June 2014.
The central bank has set a ceiling for the private-sector credit growth at 14.30 per cent for the first half of the current fiscal 2015-16 (July-December), as per the latest monetary policy statement (MPS).
Credit expansion to the private sector declined further in July from its previous month due to lower trade financing by the commercial banks.
The private sector credit growth stood at 12.96 per cent in July. Credit flow in the private sector was Tk 5,73,668.70 crore in July 2015 compared with Tk 5,07,838.40 crore during the corresponding period of the last fiscal. It was Tk 5,74,599.40 crore in June 2015 while Tk 5,07,639.90 crore in June 2014.
Actually, the business people suffer in doing business because of inadequate gas and electricity connection. Political unrest and uncertainty are another reason of short of target.
According to the economists, the country’s ideal credit growth is between 17 per cent and 18 per cent. But, it is not possible to achieve the growth right now due to the ongoing sluggish investment situation.
Large borrowers were now facing crisis and that was another reason for the lower private sector credit growth. Some of the large borrowers are now overburdened with debt while a significant number of them have already become loan defaulters.
The private sector credit growth would face hurdle in the coming months if the existing gas and electricity problem prevails. Moreover, a good number of businessmen earlier became loan defaulters because of the sluggish business amid the political unrest and eventually it became difficult for them to get more loans from banks.
Ensuring vibrant political environment is highly important to achieve goal in the private sector credit growth.
The BB data showed that the year-on-year credit growth in the overall domestic sector also decreased to 10.09 per cent in July from 11.04 per cent in June, 2015.
The total credit in the domestic sector stood at Tk 7,10,934.50 crore as of July 2015 compared with Tk 6,45,788.90 crore as of July 2014. It was Tk 7,01,526.50 crore in June 2015 against Tk 6,37,906.20 crore in June 2014.
