Dhaka, Bangladesh
Banking, financial sectors on brink

Banking, financial sectors on brink

New custodian charts remedial policy priorities

News Desk The new finance minister finds Bangladesh's banking and financial sectors on the brink and fixes policy priorities for redemption-like righting lending operations, instituting bond market, enhancing revenues through taxation reform. AHM Mustafa Kamal also said Thursday his ministry would make his vital ministry that manages the country's exchequer would be made graft-free and that good businesspeople of hues would be patronized as part of government policy for the flourishing of the economy. Present-day banking and financing, job-centric economic growth and so are also part of the priorities being set under the custody of the businessman-turned finance minister, also conversant with the tricks of the trade in accounting. "I personally think that our banking and financial sectors are facing crisis. Country's development is not possible the way we are operating our banking sector." The finance minister came up with the comment while speaking as the chief guest at the inaugural session of Agrani Bank's annual conference-2019' in the ballroom of Inter Continental Dhaka. Mustafa said, "We can't allow long-term lending by receiving short-term deposit. Those who are thinking of this strategy for development live in a fool's paradise. We have to put emphasis on bond market." The minister also emphasized increasing the purview of taxing rather than increasing tax rates for the development of the country. "The banking sector of the country is in a poor state. We have to bring glamour in the sector," he told the bankers. He said poverty must be chased away from the country. "If we all assist Prime Minister Sheikh Hasina, then we never fail. Employment will be created in every family within a short time." The new finance minister, who succeeded AMA Muhith through the Deecmber-30 election, said honest traders would get more facilities. More default loans cannot be allowed. So he asked lenders to be conscious in lending. Long-term loans cannot be given accepting short-term deposits. He also stressed the importance of looking to the bond market for raising capital now, outside the traditional banking system. "Tax net should be widened for development of the country, instead of raising tax rates," the finance minister said. Dr Zaid Bakht, chairman of the Board of Directors of Agrani Bank, presided over the function while Bangladesh Bank governor Fazle Kabir was present as special guest. Mustafa Kamal further said the government is taking multidimensional plans to expand urban facilities to rural areas and expedite economic activities. "The villages will be developed like as cities and the capable members of every household will be brought into the mainstream of the economy. The finance minister said his ministry would be made graft-free as he has already declared 'zero tolerance' against corruption. Banking From Page 1 col. 7 "Corruption can be kept under control. Corruption is prevalent more or less in all countries, but if we want, we can control it. My ministry will be free from corruption," he told his audience of bankers. Kamal asked the banks to bring new products for sustaining in the competitive world by ensuring customer satisfaction. "We will develop the bond market. We will give opportunity to the PRAN Group for releasing bond. There is no Insolvency Act in the country. It should come quickly," he added. He emphasised gearing up the initiatives to bring all taxable persons onto tax net for increasing the country's revenue collection. "Those who pay tax always pay properly. Those who have capability but never pay tax will have to pay," he said. (Inputs taken from agencies)

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