Economic Reporter :
The newly elected Board of Directors of Dhaka Chamber of Commerce & Industry (DCCI) on Tuesday said that increased private sector credit flow will ensure more investment and economic growth.
Bangladesh Bank (BB) Governor Fazle Kabir also assured that they will provide necessary supports for implementing the best proposal to develop the capital market.
“Leaders of the Dhaka Chamber of Commerce and Industry (DCCI) today (Tuesday) met BB Governor Fazle Kabir. During the call on, they discussed on different issues regarding banks and financial institutions,” BB Executive Director and Chief Spokesperson M Serajul Islam told journalists after a meeting with the newly elected leaders of the DCCI at the governor’s office in the city.
The DCCI leaders also urged the central bank to cut down lending rate to single digit and suggested reducing non-performing loan (NPL) to establish a mechanism in order to identify willful and unintentional defaulters.
The BB governor Fazle Kabir said the economy of Bangladesh mostly depends on banking financial system and the government is trying to bring down the lending interest rate to single digit for the betterment of economy, businessmen and mass people which may be implemented from April.
Government has also taken various infrastructure development projects where private sector’s intervention would be much appreciated. Regarding non-performing loans, Kabir said.
The BB governor also urged that Bangladesh should have a strong secondary bond market for long term financing mechanism. He also sought fullest cooperation of the business community for effective and proper utilisation of Export Development Fund (EDF).
During the meeting, DCCI President Shams Mahmud said though GDP growth of Bangladesh has achieved a new height crossing 8.0 per cent growth trajectory but private investment is stagnant within 22 per cent-23 per cent of GDP.
The stagnant private investment is aggravated by the slow-down in the private sector credit growth which was 9.87 per cent in November 2019.
Banking Reform Adviser of the BB S K Sur Chowdhury said that Bangladesh Bank will amend its rules and regulations if necessary and this effort will also be continued for the sake of overall banking eco-system, healthy money market and to achieve targeted economic growth.
