Lowering interest rates would also encourage more investment into future business projects
There is little doubt that the banking sector in Bangladesh has been going through a crisis for quite some time now, with staggeringly high loan default rates that seem to just keep on rising.
As such, it is good to see that Prime Minister Sheikh Hasina has talked about bringing down interest rates for loans in all banks, recognizing that they may be responsible for increased loan defaults.
However, while lowering interest rates may indeed help with the issue of loan defaults, there is no denying that the culture of corruption, nepotism, favouritism, and political strong-arming has continued to wreak havoc when it comes to borrowing.
As such, the government must continue to work to eliminate these issues.
Despite this, while the problem of loan defaulters runs deep within our economy, and merely bringing down bank interest rates would not be enough to curb this issue completely, it is encouraging to see that, instead of adopting a complacent and defeatist attitude, there are attempts being made at finding realistic solutions to the problem.
In addition to addressing the issue of loan defaulters, lowering interest rates would also encourage more investment into future business projects, as investors will feel more at ease with the lower interest rates.
Indeed, this all ties in to the government’s intent to make Bangladesh a more favourable business destination and attract investment, both local and foreign, so that Bangladesh can continue its impressive economic ascent.