Non banking financial institutions (NBFIs) urged the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) to convince Bangladesh Bank to relax some rules related to interest rate cap and loan repayment given their weak financial health.
The Bangladesh Leasing and Finance Companies Association (BLFCA), a platform of managing directors of NBFIs in Bangladesh, wrote a letter to the FBCCI, the apex trade body of the country, on September 29 requesting it to raise the issues with the central bank.
NBFIs are now struggling to manage deposits from both individuals and depositors because of an interest rate cap of 7% set by the central bank, according to the letter.
On top of that, the central bank also extended the relaxation of loan payment for bank borrowers affected by the coronavirus pandemic and floods. However, such a facility has not been offered for the NBFIs' borrowers.
The BLFCA says the central bank should form a special refinance scheme of Tk10,000 crore for weak NBFIs.
Besides, the central bank should form a committee with representation from the central bank, BLFCA, Association of Bankers, Bangladesh, a platform of managing directors of banks in Bangladesh and different experts to formulate a working plan for the reconstruction of distressed NBFIs.