Friday, January 18, 2019 | ePaper

Steps for reviving the banking sector

  • Print
FINANCE MINISTER AHM Mustafa Kamal on Thursday said that there will be no non-performing loan from now as Bangladesh Association of Banks would take necessary measures to check the loans. "The NPL becomes a matter of grave concern. But it is still in a manageable position. From now, NPL will not increase and BAB will take necessary initiatives to cut the existing classified loans," he said. BAB will present the overall situation of NPL before the government within one month so that it can take further steps to cut the existing rate of NPL. The government will also prepare a guideline to verify all the classified loans in the banking sector.
We do congratulate the Finance Minister for his tough stance to cut short the long queue of loan defaulters. His bold decision is undoubtedly help boost the economy. But we don't know whether he could be able to keep his promise in the long run. Earlier, we had heard several 'big talks' from the predecessor but ultimately witnessed nothing positive regarding the loan defaulters which apparently crippled the banking sector.
Of the some vital sectors in domestic economy, the condition of banking sector is highly miserable. Now, the total amount of defaulted loans is over Tk 1 lakh 32 thousand crore. The situation is highly alarming as huge amount of NPLs both in Nationalized Commercial Banks and in the development Financial Institutions, along with maintenance of inadequate loan loss provisions, reducing the country's overall credit quality. Political influence was the main reason behind the increasing NPL. Not only for banking sector, it's also a danger signal for country's total economy.  
Presently, the banking credit system, particularly loan disbursement to fresh entrepreneurs, has been facing debacle following the big amount of bad loans. It is directly resisting new investment while newcomers are getting frustrated. As a result, the job market is shrinking rapidly. The influential persons do not show interest for repaying their loans just because of their high political connection.
We must say, after getting the green signal of Finance Minister the banks would not hesitate to take stern action to recover their loans; no matter how powerful the loan-defaulters are. A successful and strong-based banking sector is an essential part of a developed economy.

More News For this Category

Digitalise the traffic system to meet demand of megalopolis Dhaka

THE traffic signals at important and busiest intersections in the capital have now become only fossilised symbols of one of many ineffective traffic management efforts introduced by successive authorities.The existing

Corrupt practice should be stopped in Chattogram Port

THE fraud syndicates in connivance with some dishonest clearing and forwarding (C&F) agents in the last two years released 4,000 consignments from Chattogram Port using forged documents and other illegal

Potentials of e-businesses

Taslim Ahammad :In the present day the new technologies, in particular access to the internet, tend to modify communication between the different players in the professional world, notably: relationships between

With 'No deal' ruled out, Brexit can be averted

Sir Graham Watson :At around one o'clock in the morning on 24 June 2016, soon after the polls had closed, a leading figure in the UK's Remain campaign opened a

The vulnerable coastal communities

Nigel Brett :According to UN statistics, approximately 40 per cent of the world's population lives within 100 kilometers of the coast, and overall the world's coastal population is increasing faster

Readers’ Forum

Obesity alarmingly increases Obesity is rising in Bangladesh, as indicated by several regional and international reports. The problem lies with the predominantly carbohydrate-rich diet and lack of socio-cultural awareness in

May's defeat and fate of Brexit deal

BRITISH Prime Minister Theresa May's Brexit deal has been defeated in the Parliament. It's the worst parliamentary defeat for a British government since the 1920s. The MPs have voted down

Ensure ideal working atmosphere for women

THE bike of Shahanaj Akhter, who became a social media sensation recently for her struggle to maintain her family by offering ridesharing services, was recovered from Raghunathpur area in Narayanganj

Nature and metallic pollution in Bangladesh

Shishir Reza :More than 170 million people are living in Bangladesh which is one of the most densely populated countries in the world. Agriculture plays a fundamental role in the

IMF efforts to prevent money laundering

Rhoda Weeks-Brown :Al Capone had a problem: he needed a way to disguise the enormous amounts of cash generated by his criminal empire as legitimate income. His solution was to