He assures the government will do whatever is needed to run it strongly
Finance Minister AHM Mustafa Kamal said the capital market of the country is not under government control and the banking sector is now in fragile condition.
“But I won't say it's fully beyond government control,” said the minister, responding to a supplementary question from ruling party MP, Ahsanul Huq Tito, in Parliament on Sunday.
The minister said the strength of the economy of a country is reflected by the capital market first, reports UNB.
In the whole world, capital markets and the economy are interelated this way, the finance minister said.
“We've identified problems in the capital market, and we'll resolve them one by one,” he said, adding that he has already held meetings with market stakeholders and will have more in the coming days.
“We'll try to run the market as its run in other countries. The loopholes of the market will surely be removed,” Kamal said.
He assured that the government will do whatever is needed to run a robust capital market.
Banking sector now in a delicate position
Responding to another ruling party MP, Israfil Alam, the minister said the country's banking sector is now in a delicate position.
“Our banking sector is now in a delicate position. There's no problem acknowledging that."
Kamal said such a situation may arise in every country as it is not possible all the time in a developing country to run all sectors in a balanced manner.
“In this situation, I won't say our banking sector is doing bad,” he added.
Kamal said Bangladesh is now one of the first five countries in terms of GDP growth.
"Only two countries -- China and India -- are at the same level. This achievement can't be attained without the banking sector,” he added.
He said the interest rate on bank loans in the country is comparatively higher than other countries. "In the whole world, no country has a 14-15 percent interest rate."
“We'll formulate a rate integrating system with other countries of the world. If we can implement that interest rate, it'll be a turning point in the history of the economic sector of Bangladesh," he said.
The finance minister mentioned said if interest rates cannot be brought down to single digits there will be more non-performing loan write-offs.
“The weak areas will be weaker, and we don't want that repetition. We've started our work. Now it's time to implement it. We'll reduce interest rates," he told the House.