FBCCI calls for increasing single borrower exposure limit
FBCCI President Mahbubul Alam presented these recommendations during a discussion on the country’s economic situation and banking sector with managing directors and chief executive officers of banks at the apex trade body’s Gulshan office on Wednesday.
The Federation of Bangladesh Chambers of Commerce and Industry has made several recommendations, including increasing the single borrower exposure limit, to address the country's prevailing business situation.
The recommendations include increasing the single borrower exposure limit from 15% to 25%, converting short-term loans into long-term ones to protect manufacturers, normalising dollar supply and LC openings, avoiding interest rate hikes, offering a six-month grace period for overdue term loans, ensuring adequate dollar supply, rationalising bank charges and commissions, and providing an exit strategy for struggling industries.
FBCCI President Mahbubul Alam presented these recommendations during a discussion on the country's economic situation and banking sector with managing directors and chief executive officers of banks at the apex trade body's Gulshan office on Wednesday.
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He also called for reducing non-performing loans, saying bad debt is a significant hindrance to the country's economic activities.
He highlighted the complementary roles of the private sector and banking sector in ensuring economic development and progress for the country.
"In this partnership, banks are partners in business. The banking sector plays an immense role in the industrialization and investment of the country. Economic development will accelerate if banking facilities are easily accessible, seamless, and expedient," he added.
The FBCCI president further emphasised the need to strengthen the investment and business-friendly environment of the country in the current situation, especially to face challenges after the LDC transition. "We must confront tough challenges to survive in the fiercely competitive global market," he added.
Selim RF Hussain, chairman of the Association of Bankers, Bangladesh, said the sale and purchase of dollars in private banks have started to normalise.
He commented that the situation is expected to stabilise further within one to two months.
He also said banks are making efforts to maintain the interest rate below 14%.
