Guidelines needed to promote supply chain financing: experts

Staff Correspondent | Published: 00:00, Sep 20,2019

 
 

Formulation of integrated guidelines on supply chain financing could help build trust among banks and non-bank financial institutions in launching the financial product that would amplify financial capacity of the suppliers as well as the buyers, experts said on Thursday at a discussion organised by the Bangladesh Institute of Bank Management at its office in Dhaka.

In a presentation on supply chain finance in Bangladesh, BIBM professor and director Prashanta Kumar Banerjee said that collective initiative of Bangladesh Supply Chain Management Society, banks, NBFIs and different chambers and SME Foundation could create awareness about the financial product.

They can form a strong alliance to raise awareness particularly among anchors or corporate houses about the necessity and benefits of supply chain financing, he said.

Bangladesh Bank deputy governor and BIBM executive committee chairman SM Moniruzzaman said portfolio size of supply chain finance by banks and NBFIs was about Tk 870 crore.

Of the total portfolio, NBFIs hold around 90 per cent market share and the remaining portion goes to banks’ portfolio, he informed.

It seems that amount of lending under supply chain finance has been growing in Bangladesh, he said.

He said, ‘BB is always positive about launching new financial services for the benefits of the financial sector. But we must be sure about the pros and cons, simplicity and risk factors and necessary process before launching any new financial service in our financial sector.’

BIBM chair professor Barkat-e-Khuda and supernumerary professor Helal Ahmed Chowdhury also spoke, among others, at the discussion.

More about:

Want stories like this in your inbox?

Sign up to exclusive daily email

Advertisement

images

 

Advertisement

images