The Association of Bankers Bangladesh (ABB), an organization of the country's bank chief executives, has expressed concern over the ongoing unrest surrounding Islami Bank Bangladesh PLC.
According to the organization, the current situation of Islami Bank is not limited to just one institution; its impact is affecting the entire banking sector.
ABB chairman and City Bank managing director Masrur Arefin told reporters after a meeting with the Bangladesh Bank governor on Wednesday.
He said that the situation that has arisen around Islami Bank has become a cause for concern for the stability of the country's banking sector. There is concern among bankers in this regard.
Masrur Arefin said that the Bangladesh Bank governor said in the meeting that he does not see the current crisis of Islami Bank as only a problem of the banking sector; rather, it has now also acquired a political dimension.
For this reason, efforts are being made to resolve the problem through compromise between the parties concerned.
The ABB chairman also said that the central bank is also taking a strict stance on establishing good governance in the banking sector.
He said that the governor has urged the chief executives of the banks not to succumb to political pressure. At the same time, he has directed the Credit Information Bureau (CIB) to ensure the provision of correct and accurate information.
The meeting also discussed increasing credit flow in the banking sector and financing of micro, small and medium enterprises (SMEs).
In this context, Masrur Arefin said that the government and Bangladesh Bank are jointly working on a new financing package of about Tk60,000 crore.
This money will be distributed under the central bank's refinance scheme and entrepreneurs in the SME sector will get this benefit.
He further said that the governor has expressed concern that various errors and delays in sending information related to exports and imports are creating complications in the national accounting. In particular, there is a significant difference between the declared price of imported goods and the international market price.
In this situation, the central bank has emphasized the use of global digital platforms and online databases to verify the actual price of goods in the international market. The regulatory body believes that this will reduce the risk of paying extra prices and ensure the country's foreign exchange savings.
