He said the banks' lending rate was much higher and it was largely contributing to increasing bad loans in the banking sector
Finance Minister AHM Mustafa Kamal on Sunday said managing soaring non-performing loans (NPLs) in the country was a big challenge.
He said the banks' lending rate was much higher and it was largely contributing to increasing bad loans in the banking sector.
He was briefing reporters after a meeting with chairmen, directors, managing directors (MDs) and chief executive officers (CEOs) of public and private banks at the NEC auditorium at Agargaon in the capital.
The finance minister said a high-powered committee would be formed to recommend strategies to implement single digit interest for bank loans and reduce the NPLs.
"The meeting today decided to form a high-powered committee to recommend strategies for lowering the lending rate and reducing NPLs. Bangladesh Bank (BB) governor has been asked to do it," Kamal told reporters.
"It is the discretion of the governor to set the members of the committee, its head and who will be included in the committee," he added.
He said the meeting discussed the NPLs and lending rate issues with bank chairmen, MDs and CEOs of all public and private banks to find ways to reduce NPLs and lower the lending rate to single digit at 9%.
Mustafa Kamal said NPLs would be reduced at the end this month.
Governor Fazle Kabir, who was also present at the press briefing, said a seven-member committee, headed by a BB deputy governor, would be formed.
He said chairmen of private and public banks, representatives of financial institution division and finance division, would also be included in the committee.
"The committee will be formed today (Sunday). The committee will place its report by next seven days," Kabir said.