The lack of proper credit risk management is the major challenge for banking business in Bangladesh, speakers said at the banking summit yesterday.
The two-day-long summit titled “Asian Banking Summit 2015” began in a city hotel in the capital.
In his address, IFIC Bank Chairman Salman F Rahman viewed that many businesses collapse due to lack of loan assessment.
“We need to develop our in-house capacity to identify the risks.”
He said there are different kinds of risks prevailing in banking business where money laundering and terrorist financing are new inclusions.
While sharing his experience at the summit, former deputy governor of the central Bank Mohammad A. (Rumee) Ali said in Bangladesh, most defaulters are those who lead the banks.
He said these people have a lot of money, but still they turn defaulter because of their greed while micro-borrowers pay hundred percent of their loans.
Rumee added that micro-borrowers come under extreme supervision while big borrowers remain out of such watch.
“We should address such discrimination,” he advised.
Bangladesh Bank Deputy Governor SK Sur Chowdhury attended the summit as the chief guest.
In his keynote speech over “Risk management and its context in Bangladesh, he said banks are facing earning pressure due to sluggish business in the country.
The central bank has noticed them taking additional risk management strategy to resist future vulnerability.
Organised by Nimai Management Consultants, a UAE-based financial services firm working on advisory on risk consulting globally, the summit will conclude today.
