Banks deviated from globally practiced objectives: Barua
Dhaka, Mar 21 (UNB) - Industries Minister Dilip Barua on Wednesday said profit-making has become the focus of the country’s banks as they have deviated from the globally practiced objectives.
“Providing social services is the key objective of banks globally….here making profits has become the key focus of our banks…this conflict needs to be addressed for rapid industrialisation and economic growth,” he told a seminar in the city.
Barua criticised the banks for their high interest rates and said this has been impeding the growth of the small and medium enterprises slowing down the overall economic growth.
“The lending rate should be at single digit. The economic growth will hit double digit if the bank interest rate comes down to single digit,” he said emphasising required credit access to small entrepreneurs.
The Small and Medium Enterprises Owners’ Association of Bangladesh (SOAB) in cooperation with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) arranged the seminar, titled ‘Not increasing interest rate, inflation needs to be brought down through efficient management’, at the FBCCI conference hall.
FBCCI senior vice president M Jashim Uddin, Bangladesh Bank general manager (SME & Special Programmes Department) Sukamal Sinha Choudhury, Consumers Association of Bangladesh (CAB) president Quazi Faruque, Rupali Bank director Kazi Morshed Kamal, economist Nur Mohammad and business leaders spoke on the occasion.
“Providing social services is the key objective of banks globally….here making profits has become the key focus of our banks…this conflict needs to be addressed for rapid industrialisation and economic growth,” he told a seminar in the city.
Barua criticised the banks for their high interest rates and said this has been impeding the growth of the small and medium enterprises slowing down the overall economic growth.
“The lending rate should be at single digit. The economic growth will hit double digit if the bank interest rate comes down to single digit,” he said emphasising required credit access to small entrepreneurs.
The Small and Medium Enterprises Owners’ Association of Bangladesh (SOAB) in cooperation with the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) arranged the seminar, titled ‘Not increasing interest rate, inflation needs to be brought down through efficient management’, at the FBCCI conference hall.
FBCCI senior vice president M Jashim Uddin, Bangladesh Bank general manager (SME & Special Programmes Department) Sukamal Sinha Choudhury, Consumers Association of Bangladesh (CAB) president Quazi Faruque, Rupali Bank director Kazi Morshed Kamal, economist Nur Mohammad and business leaders spoke on the occasion.
SOAB president Ali Zaman presented the keynote paper at the seminar.
Speaking on the occasion, CAB president Quazi Faruque said the commercial banks are raising interest rates by creating a syndicate obstructing the country’s industrialisation, particularly the growth of SME sector. “Time has come to be vocal against this illicit activity.”
Faruque said: “If we can’t come out of the pressure created by the banks through syndication, the industries, especially the SME sector, won’t flourish.”
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