Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Thursday, February 23, 2017 07:54:13 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

BANK, Insurance AND NBFI Business in Bangladesh

'Improve investment climate rather hammering bankers to lower interest,' says Dr Salehuddin Ahmed

By
20th-Nov-2016       Readers ( 95 )   0 Comments
Comments
Share your thought
Post a comment »
Read all (0) »

Mohammad Badrul Ahsan :
Dr. Salehuddin Ahmed, a former governor of Bangladesh Bank (BB), has opined that the government should concentrate more on improving investment climate in the country to accelerate business activities.
He said that only lower interest of fund would not work well if the situation was not improved.
"I strongly believe that only low cost of fund cannot play roll to boost investment. Quality of infrastructure and power and energy also have impact on the issue," he said.
He added: "Present rate of interest against lending and deposits in the financiers are quite justifiable. Almost all the banks are offering loans at single digit which was the main demand of business community and the government for long but what we are seeing in reality is that cheap fund could not boost investment significantly."
Replying to a query regarding upward trend of foreign loan inflow in the private sector, the money market expert said, "As the rate of interest in local financial institutions is still higher than that of foreign one by 3 to 5 per cent, a section of local businesses still prefer to avail foreign fund."
"In some cases, we know that local companies receive low cost foreign fund to repay the costly loans taken from local sources earlier."
The money market expert, however, cautioned that if the companies, those are receiving foreign fund are not export-oriented, may put pressure to the government exchequer at the time of repayment.
"Considering the overall impact of foreign fund, the government should be more selective while giving approval to interested companies to avail fund from overseas sources," he said.
According to the central bank data, inflow of the private sector foreign loan increased by 12.54 per cent during the last fiscal year compared to that of 73 in previous fiscal year.
The former BB governor also put his opinion on government's borrowing at high rate of interest through saving tools.
He said the government sales different types of saving tools at high interest, mostly to support a group of its citizens.
"Elderly people, retired persons, women and some other specific segment of people are the main forecast of the government to give the privilege. So, we cannot say that selling saving tools at higher rate unjustified," he opined.
Meanwhile, the former governor also urged the government to find out ways to keep affluent people away of availing the advantage.
"We see that many well-off people are also buying saving tools in bulk although the initiative was taken to support the needy. The government should way out mechanism so that rich people cannot avail the opportunity," he said.
Dr. Salehuddin Ahmed is a Bangladeshi economist, civil servant, and a former governor of Bangladesh Bank. He was the ninth governor of the central bank. After the retirement of Fakhruddin Ahmed, he took the responsibility of the central bank on May 1 in 2005 and he retired from his duty on April 31 in 2009.

(The former Bangladesh Bank governor shared his views with The New Nation on interest rates against landing and deposits in banks considering the present investment climate in Bangladesh.)

0 Comments. Share your thoughts also.
Write a comment
Tariff
Add Rate

News Archive

Inside The New Nation

Sports »

India men`s and women`s Rollball teams, the champions of the men`s division and women`s division of the 4th Rollball World Cup pose for a photograph at the Shaheed Suhrawardy Indoor Stadium in Mirpur on Wednesday.


Football »

Shaheen post 3-1 win as Sharifi slams hat-trick


Amiruddin Sharifi slam a brilliant hat-trick saw Shaheen Asmayee FC, Afghanistan recorded a 3-1 goal victory over Nepalese football club Manang Marshiandi in the Sheikh Kamal International Club Cup held on Wednesday.The first match of the 4th day into the group stage at the MA Aziz Stadium saw Amiruddin set ...

Editorial »

BGB-BSF meeting yet again failed to stop border killing


BORDER Guard Bangladesh (BGB) and India's Border Security Force (BSF) will now conduct joint verification instead of investigation into border killings. The decision on joint verification came during a DG-level conference in Dhaka on Tuesday to reduce the number of border killings to zero level. Last year, BGB-BSF decided to ...

City »

The New Nation Family Day was observed at a resort at Bhaluka in Mymensingh on Tuesday. Participants of different events seen receiving gifts from the event organizers including Md Shahjahan Mojumder, News Editor, Moazzem Hossain, GM, Alamgir Khan, Shift-In-Charge, Hemayet Hossain, Unit Chief, DUJ, Md Badrul Ahsan, Business Editor, Jahangir Alam Masud, Advertisement Manager, Abdul Latif, Chief Accountant and Shah Alam, Computer-In-Charge.


Entertainment »

Culturally rich experience for Deepika


Deepika has traveled across the world to promote her global franchise film, xXx - Return of Xander Cage. Deepika has been an integral part of xXx’s global promotions. Not only did the entire team come to India for promotions, but they also traveled to a lot of other places to ...

International »

Trump`s new security adviser differs from him on Russia, other key issues


Reuters, Washington :US President Donald Trump has shown little patience for dissent, but that trait is likely to be tested by his new national security adviser, Army Lieutenant General HR McMaster.McMaster is joining the White House staff with views on Russia, counterterrorism, strengthening the military and other major security issues ...

Editorial »

Ekushey tells us to live with our rights and pride


THE Nation celebrates 'Amar Ekushey' today with due solemnity and festivities to remember the Martyrs of the 1952 Language Movement. It is a landmark occasion and day of awakening in the history of Bengali people that made it clear that we have our own language and our identity that must ...

Football »

Last-gasp Messi penalty rescues poor Barcelona


Barcelona needed a last minute Lionel Messi penalty to see off lowly Leganes 2-1 as a poor week for the Spanish champions continued on Sunday.Barca were thrashed 4-0 by Paris Saint-Germain on Tuesday to leave their Champions League hopes hanging by a thread and had to rely on Messi for ...

New Nation Supplement »

Genesis of the Language Movement


A.T.M.Nurun Nabi :The movement for decorating Bengali with the status of an official language in India began long before the creation of Pakistan. An English writer N.B. Holhed in the year 1778 published a book named 'A Grammar of the Bengali Language' (otherwise known as Holhed Grammar) in which he ...

International »

Singaporean PM, hosting Netanyahu, endorses `two-state` plan


AP, Singapore :Singaporean Prime Minister Lee Hsien Loong, hosting a visit by his Israeli counterpart, Benjamin Netanyahu, said Monday his country believes in a "two-state solution" to the Israeli-Palestinian conflict.Lee explained his stand at a joint news briefing with Netanyahu, who does not endorse the two-nation approach. Lee said he ...

Cricket »

Bye-bye 'Boom Boom' as Afridi ends international career


AFP, Sharjah :Legendary Pakistan all-rounder Shahid Afridi on Sunday announced his retirement from international cricket, ending an illustrious and sometimes controversial 21-year career.The 36-year-old star had already quit Tests in 2010 and ODI cricket after the 2015 World Cup but still skippered the Pakistan Twenty20 team at the 2016 world ...

Entertainment »

How Saba Qamar reacted on her `Viral Video`


Pakistani actress Saba Qamar, who is in the news for an old video footage in which she branded Bollywood star Salman Khan a chhichhora (indecent), says she loves the Indian film industry and finds the Dabangg star humble. In a two minute-plus long video from an old episode of Pakistani ...

Entertainment »

Very difficult to get good films: Taapsee Pannu


Taapsee Pannu has Running Shaadi.com, Naam Shabana, The Ghazi Attack and Judwaa 2 lined up. Actress Taapsee Pannu is on a roll. She has at least four films lined up for 2017, and she loves her busy phase. She has Running Shaadi.com, Naam Shabana, The Ghazi Attack and Judwaa 2 ...

City »

Newly appointed Election Commissioners led by its Chief KM Nurul Huda called on President Abdul Hamid at Bangabhaban on Monday.


Editorial »

Merkel`s bold assertion, Islam is a religion of peace


WHEN a global superpower is obdurate in its blatant attempts to brand Islam as a religion of terror, German Chancellor Angela Merkel makes it loud and clear that Islam is a religion of peace and not terror. Her comment in the just ended Munich Security Conference held in Germany re-establishes ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news