Bangladesh Bank Governor Ahsan H. Mansur promised today (January 28) that the government will use all available tools to save the failing banks. He stated that choices on weak banks will be taken this year while serving as the keynote speaker at a workshop called “Microfinance in Bangladesh 24” at the capital’s Cirdap Auditorium. “For banks unable to return customers money, I assure you that the money will either be refunded or paid through bonds” added the governor.
Microfinance organisations currently have 24,000 branches nationwide, while banks have about 24,000 agent banking locations. It is anticipated that banks would add about 60,000 agent banking locations over the course of the next five years. “I have been advising for the past ten years not to keep money in S Alam’s banks, but many chose to deposit there for an extra two percent profit,” he explained. Microfinance institutions will face more challenges over the next five years, according to Ahsan H. Mansur.
While mobile financial service (MFS) providers are increasingly collecting deposits and making loans, he pointed out that competition for microcredit institutions is becoming more intense. The rise of digital banking will also provide microfinance organisations with new difficulties.
The governor added that microfinance institutions disbursed loans totalling Tk3 lakh crore in the fiscal year 2023–24, a 5.26% increase over the previous year. Tk 99,000 crore of this was given directly to microbusiness owners.
Source: The Business Standard
