The World Bank has planned to help Bangladesh’s banking sector reform secured lending and movable collateral policy, which is expected to bring more people under the banking services, said a senior official.
“Local commercial banks are lending to customers, but there are no established rules or policy regarding the secured lending and movable collateral credit,” said Bank and Financial Institutions Division Secretary M Aslam Alam yesterday.
He presented a keynote speech at the concluding session of a two-day workshop in the city.
World Bank organised the event styled as “Secured lending and moveable collateral reform in Bangladesh: promoting the use of movable collateral for greater access to credit.”
It was aimed at helping the authorities formulate a coordinated policy for movable collateral loans.
World Bank Group global product leader Alejandro Alvarez de la Campa, financial infrastructure lead (South Asia) Swati Sawhney and global secured transactions and collateral registry specialist Murat Sultanov also presented papers on the subject.
Aslam Alam said the poor people will benefit from the secured lending and movable collateral credit and the World Bank will help formulate a policy in this regard.
The Bank Division will remain sincerely engaged with the task of materialising the needed reforms because access to credit is crucial for economic growth and development, he pointed out.
According to the policy, the movable goods of potential clients will be registered in the board and the banks will give loans according to valuation of goods.
Low income people will get financial benefits from a movable goods policy.
Bank Division secretary said almost 80% of the country’s businesses are SMEs and they generate about 40% of total employments with an around 25% contribution to the country’s GDP.
