Default loans went down in 2020 on the back of a general forbearance on loan payments, a development that does not cheer experts and bankers as the fall did not paint the actual scenario. Non-performing loans (NPLs) stood at Tk 88,734 crore last year, down 5.93 per cent year-on-year, data from the Bangladesh Bank showed. Experts and bankers call the decline in the NPLs
Bank directors’ demand for extending loan repayment tenure faces criticism
Directors of banks have urged the central bank to relax the repayment tenure for term loans and working capital further, a demand that was opposed by bankers and analysts as the banking industry is still reeling from the pandemic-induced slowdown.
The banking sector has been in a bad state of affairs for the last couple of years and the ongoing business slowdown caused by the coronavirus pandemic has exacerbated the situation.
Against the backdrop, the central bank should not entertain the proposal of the Bangladesh Association of Banks (BAB), an organisation of directors of private banks, in the interest of the banking industry, experts said.
Monetary policy dilemma of Bangladesh Bank
The Bangladesh Bank head office is seen in the capital’s Motijheel area. The policy dilemma is likely to intensify in the coming months, complicating the central bank’s monetary policy management. Star/file
As the covid-19 pandemic unfolded, central banks across the globe responded with a dramatic easing of monetary policy to provide liquidity support for the faltering economic activities.
Bangladesh Bank s (BBs) policy response was also similar, but measured in terms of scope and extent in line with the unfolding domestic economic conditions. The injection of liquidity, as part of the government s bank-led economic stimulus package, has been sizable and considered absolutely essential to avoid any liquidity crunch in the economy.
BIDS among 100 top think-tanks worldwide in 2020 Star Business Report Star Business Report
Bangladesh Institute of Development Studies (BIDS) has been ranked as one of the top 100 think-tanks worldwide, according to the 2020 Global Go to Think Tank Index (GGTTI) released on Thursday.
The autonomous public multi-disciplinary organisation advanced 10 notches to 94 in the 2020 GGTTI from 104th position the previous year, according to the index prepared by The Think Tanks and Civil Societies Program (TTCSP) at The University of Pennsylvania.
This is the 15th edition of the GGTTI since the index was launched in 2006.
This year, 3,974 plus university faculty and administrators, journalists, policymakers, think tank scholars and executives, and donors from every region participated, said the report released by The Lauder Institute of The University of Pennsylvania.
Bangladesh Bank in a tight spot
It may need to continue expansionary monetary policy, which is creating excess liquidity amid lower credit demand
The central bank plans to continue its expansionary monetary policy in the second half of the current fiscal year because of the persistent business slowdown caused by the coronavirus pandemic.
The monetary policy committee of the central bank will sit on January 31 to decide whether the unconventional tools of the policy will be revised, said a number of central bankers with direct knowledge about the matter.
The major targets of the monetary policy for 2020-21 will not change to a large extent given the economic hardship, they said.