Finance Minister Abul Maal Abdul Muhith has said it is not feasible for commercial banks to give long-term loans using resources from short-term deposits.
Muhith stated this while speaking at the Annual General Meeting of Janata Bank at a hotel in Dhaka.
The minister also said that this is detrimental to the banking sector, and that a capital market needs to be created in order to rectify this.
“We have decided that we will give the responsibility of strengthening the capital market to a small group within 1-2 months,” he continued.
“Certain people are saying that there is a lot of economic unrest, but there is no such thing. The country’s financial situation is sound, and there is a chance that the GDP will increase to 7.5% within the fiscal year,” he added.
The program was presided over by Janata Bank Chairman Luna Shamsuddoha with Bangladesh Bank Governor Fazle Kabir and Financial Division Secretary in Charge Md Muslim Chowdhury present as special guests. Janata Bank Managing Director Abdus Salam Azad also spoke at the event.
This article was first published on banglatribune.com