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Inadequate data affects financial sector

  • Published at 09:47 pm July 6th, 2019
Inadequate data affects financial sector
Guests pose with copies of Banking Almanac 2017, which was launched at National Press Club, Dhaka on Saturday Rajib Dhar/Dhaka Tribune

Experts say while launching Banking Almanac 2017

Inadequate and sometimes contradictory information about banking and financial sector dents stakeholders' confidence, experts have said, emphasizing good governance in the sector and minimizing the discrimination between depositors and borrowers for robust growth. 

They said this while launching a book, Banking Almanac 2017, at National Press Club on Saturday.

‘There is some issues like non-performing loans, liquidity crisis, high interest rate and profit. These issues sometime come up with contradictory data,’ said Hossain Zillur Rahman, former adviser to a caretaker government. 

He also said that such contradictions would create mistrust. ‘Sometimes we see the borrowers are more privileged than the depositors. Good governance is very important to address such matters,’ he said while speaking as a special guest. 

Another advisor to a caretaker government ABM Mirza Azizul Islam said that financial literacy and availability of relevant information would help to build a robust industry. 

‘We have compilations like Banking Almanac but it needs more analytics with it. And there should be training for stakeholders,’ he said while delivering the chief guest’s speech. 

He also said the financial industry heavily depended on banks only but there should be long-term financing options.

‘Like capital market, we do not have a bond market. If such options were strong enough, the overall financial industry will be better off and the banks will perform well,’ he said.   

Echoing Hossain Zillur, Mirza Aziz said issues like non-performing loan needed more attention.   

The project director for publishing the book, Abdal Rahman, said that it appeared that the stakeholders in the banking industry lacked proper information. 

‘That is why we took the initiative which is funded and guided by Bangladesh Bank along with the help with some other institutions,’ he said.

Information about four specialized banks, 58 commercial banks and 34 non-bank financial institutions was compiled in the Banking Almanac 2017 edition, the second of its kind as the first was published in 2016.

Editorial board chairman of the book and former BB governor Salehuddin Ahmed said that although it might seem that publishing the industry data of 2017 in the year of 2019 was a bit untimely.

‘There were some difficulties about obtaining the information and we hope it will be more timely next time. But the relevance of the book is still there for the researchers, journalists and banking sector professional,’ he said while giving speech as a chairman of the session.