All ongoing reforms in the banking sector, including the merger of five banks, will continue, said governor of Bangladesh Bank Md Mostakur Rahman.
He made it clear that no political pressure will be accepted and the central bank will take a tough stance to ensure good governance in the banking sector.
He said these during a courtesy call on the Association of Bankers, Bangladesh (ABB), an organization of bank CEOs, at the central bank on Sunday (March 1).
The CEOs of 19 banks, led by ABB chairman and City Bank managing director Mashrur Arefin, participated in the meeting.
The governor's message at the meeting is seen by those concerned as a response to the confusion created over the merger process of private sector Exim, Social Islami, First Security Islami, Union, and Global Islami Bank.
Bangladesh Bank spokesperson and executive director Arif Hossain Khan said that in the meeting with the MDs, the governor gave a clear message about continuing the reforms. He also spoke about strengthening the central bank's policy support for employment creation. Banks have been urged to play a more active role in this regard.
The governor emphasized creating a business and production-friendly environment to create one crore jobs in the next 18 months, as per the election promise of the current government.
He also directed to reopen the factories that were closed after the political change and to strengthen financing in the CMSME sector.
The governor emphasized ensuring productive use of non-performing assets created from defaulted loans. As an example, he highlighted the possibility of reviving closed industrial enterprises through new entrepreneurs or service-oriented activities.
After the meeting, Mashrur Arefin told reporters that the MDs have been urged to inform the governor directly if there is any political interference in the issue of loan disbursement or good governance.
The central bank has also been assured of taking steps to quickly resolve the various issues raised by ABB.
The governor announced plans to relax controls on some issues to reduce business costs. As part of this, regional rents will be set for opening branches. Banks will no longer have to seek approval from the central bank if they are within the prescribed limits. Leasing agreements will also be given freedom under the policy.
In addition, initiatives to provide incentives to exporters, EDF reimbursement, and remittance incentive arrears were also raised in the meeting.
The governor gave the idea of organizing a 'Bangladesh Day' jointly by the central bank and commercial banks this year to attract foreign investors and lenders.
He also highlighted the 'One Village, One Product' initiative. As an example, he mentioned the banks' support in bringing the famous cheese of Ashtagram in Kishoreganj to the world market. Similarly, he emphasized on identifying potential products based on districts and villages and providing financing and branding support.
Those present at the meeting said that the governor listened carefully to everyone's opinions at the beginning and then outlined his priorities. The meeting ended with the assurance that the central bank will play an active role in ensuring discipline, good governance and growth in the banking sector.