District-wise lead bank appointed for CMSMEs’ package execution

Staff Correspondent | Published at 09:57pm on January 24, 2021

The Bangladesh Bank on Sunday appointed district-wise lead banks for the year 2021 with a view to expediting and ensuring effective implementation of the Tk 20,000-crore stimulus package meant for the cottage, micro, small and medium entrepreneurs.

Dismal implementation of the package even after nine months of its launch prompted the central bank to take the move.

The BB issued a circular on Sunday giving a 10-point instruction to the lead banks.

Among the private and public banks which were in operation in a particular district, the central bank appointed a particular bank to coordinate and maintain communication with the central bank through the BB’s regional offices.

In the circular, the central bank said that the appointment of a lead bank can play a vital role in creating awareness among marginal people on measures and policies on financing the CMSMEs.

In terms of tackling the post-COVID financial challenge and working collectively, the appointment of a lead bank can play an effective role by bringing all the financial institutions along with the stakeholders under a single platform, it said.

The lead bank would also assist the district-wise SME loan disbursement monitoring committee, it said.

As of December 17, 2020, the scheduled banks have implemented 46.36 per cent of the stimulus package announced for the CMSMEs.

Due to the poor disbursement of the stimulus meant for the CMSMEs, the BB in January again extended the deadline for implementation of the package by three months to March 31, 2021 from December 31, 2020.

The banks’ collective disbursement to 66,610 CMSMEs reached Tk 9,271 crore on December 17 in 2020.