Bangladesh Bank Governor Atiur Rahman asked the banks to go for long-term investment in the government sponsored mega projects, including the flyovers and Padma bridge.
As part of the preparation for long-term investment, he suggested the banks to collect deposit for long time to avoid tenure miss match.
He came up with the suggestion while addressing an international seminar on “Banking in Bangladesh: The Leap Forward” organized by Association of Bankers Bangladesh (ABB) at a city hotel yesterday.
The governor did not, however, explain why the banks will have to go for long term investment in the mega projects.
He said banks face difficulties in providing large investment due to deposits of short-term nature. As the banks would have to go for investment in flyovers and four-lane projects in the future, they should collect long-term deposit, he added.
The state-owned banks have already realised the need for long-term deposits, he said.
He asked the banks to bring the remitters and garment workers under financial scheme to ensure proper use of their earnings.
He said many expatriates spent their money for family consumption and house building and they do not have any more funds available when they come back home many years.
He called the banks to make a mechanism to turn the remittance into investment.
The central bank governor claimed that people had comparatively more confidence on the financial sector then other sectors as Bangladesh Bank respondsto their allegations instantly.