Bangladesh Bank Governor Dr Ahsan H Mansur said on Sunday banks are not much interested in lending to Small and Medium Enterprises (SMEs) or climate and green financing.
While inaugurating the golden jubilee celebration of the Bangladesh Institute of Bank Management (BIBM) in the capital, he urged bankers to change their mindset for financing non-conventional and new sectors.
“Money has been given for many sectors but that money is not being transferred. Those who are running banks and financial institutions are not very enthusiastic about these sectors or are not willing to take risks. We need to change our mindset here,” Dr Mansur said.
The central bank governor expected that the financial institutions will play a stronger role in financing the non-conventional and new sectors.
He also asked the BIBM to work on the banking sector’s new challenges like climate financing, green financing, developments in the financial sectors and technological innovations.
However, the governor acknowledged that despite shortcomings, Bangladesh has made significant progress in the development of its financial sector.
He called for a thorough self-assessment of the limitations hindering further development of the financial sector.
“The banking sector of Bangladesh has progressed a lot. There is no doubt about it. On the other hand, it must also be said that despite our achievements, there are many failures in terms of how far the banking sector could have progressed or how far the entire financial sector could have progressed,” he said.
He, however, said no single group or authority is responsible for the failures of this sector. “We all might have worked on it (this financial sector) differently from our own positions. We all might have worked with integrity. Maybe there was a deviation or not. We have to do this self-analysis.”
Mentioning that institutions like BIBM are very necessary for the development of the banking sector, he said the institute has been able to play an important role in building human resources in this sector
The Bangladesh Bank Governor asked the BIBM to pay attention to attract foreign students and spread its name and fame to the international arena.
BIBM Director General Dr Md Akhtaruzzaman chaired the inaugural session, while Association of Bankers Bangladesh (ABB) Vice Chairman and City Bank Managing Director SM Mashrur Arefin, Chair of the Organising Committee Dr Shah Md Ahsan Habib and its member secretary Dr Mohammad Tazul Islam spoke on the occasion.
BIBM is the national training, research, consultancy and education institute on banking and finance collectively owned by the Banking sector of the country.
The Bangladesh Institute of Bank Management (BIBM) was established in 1974 with the primary objective of providing training to the officials of banks and financial institutions in Bangladesh, aimed at enhancing and updating their skills.
Over the years, the institute has expanded its focus and now offers specialised training programmes for mid- and senior-level executives in the banking sector, further strengthening the leadership and management capabilities within the industry.
