The country’s banking and non-bank financial sectors are now in the most vulnerable position, said finance minister AHM Mustafa Kamal on Thursday.
He made the comment while addressing the annual banking conference of Agrani Bank at a hotel in Dhaka where Bangladesh Bank governor Fazle Kabir, Agrani Bank chairman Zaid Bakht and Agrani Bank managing director and chief executive officer Mohammad Shams-Ul Islam were present, among others.
‘Corruption can be kept under control. But, there is more or less corruption in every country in the world and Bangladesh is not an exception,’ said Kamal, adding, ‘If we want, we can control it and my ministry will be free of corruption.’
He said, ‘At present, the country’s banking and financial sectors are in the most vulnerable position.’
The present mode of operation would not be able to give the desired development to any country, he said.
‘Long-term financing through short-term deposits is not a standard procedure,’ said the finance minister adding that the people who were thinking about development with such type of financing were living in a fool’s paradise.
To solve the problem, the government would develop financing through issuance of bonds, he said.
He also said that the government was taking multidimensional plans to expand urban facilities to rural areas and expedite economic activities.
‘We will give opportunity to PRAN Group for releasing bond. There is no Insolvency Act in the country. It should come quickly,’ the finance minister said.
‘The villages will be developed like cities and the capable members of every household will be brought into the mainstream of the economy,’ he said.
Kamal asked banks to bring new products for sustaining in the competitive world by ensuring customer satisfaction.
He emphasised gearing up the initiative of bringing all taxable persons under the tax net for increasing the country’s revenue collection.
‘Those who pay tax always pay properly. Those who have capability but never pay tax will have to pay,’ Kamal said.
At the conference, Mohammad Shams-Ul Islam said that the total deposits in Agrani Bank stood at Tk 62,392 crore at the end of December, 2018 while it’s disbursement of loans and advances reached Tk 39,575 crore.
Out of the loans, Tk 5,751 crore turned into defaulted loans, representing 16.21 per cent of the disbursed loans.
The number of branches of Agrani Bank across the country reached 952.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Banking