Finance Minister AHM Mustafa Kamal apparently has no idea about the Federation of Bangladesh Chambers of Commerce and Industry’s (FBCCI) plans to set up a commercial bank.
“I don’t know about this. I have not received any such proposal,” Kamal said yesterday. The country’s apex trade body also wants to establish a university to develop Bangladesh’s workforce in line with industry requirements.
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The outgoing FBCCI board approved the proposals in a virtual meeting on Saturday.
However, Kamal maintains that no approached him about the proposed bank.
“There were no discussions regarding this. When I will know, then you [journalists] will also be well informed,” he said after a meeting of the cabinet committee on government purchase.
Experts criticised the proposal to set up a separate bank.
“The idea is absurd as the apex trade body has done little for the cottage, micro, small and medium enterprise (CMSME) sector,” said Ahsan H Mansur, executive director of Policy Research Institute of Bangladesh.
There are currently 61 banks and 34 non-banking financial institutions operating in the country.
As the apex trade body, the FBCCI has a lot of responsibilities. This includes negotiating with the government to protect the interests of the local business community.
“But it can’t ask to run a separate bank. There is no such precedence of bank operations by any trade body in the world,” Mansur added.
Fahmida Khatun, executive director of the Centre for Policy Dialogue, said there is no need for any new bank as the number of lenders is already too high given the country’s business volume.
“Allowing a new bank will not bring any good to the economy. Rather, we should focus on how to improve the financial health of existing lenders as only 10 to 15 of them are doing well,” she added.
Salehuddin Ahmed, a former governor of Bangladesh Bank, said there was no genuine logic behind the FBCCI seeking a bank licence.
“If the directors of the FBCCI or other businesses face any problem in managing loans, they can urge the government and the central bank to reform the banking industry.”
Siddiqur Rahman, senior vice-president of the FBCCI, said the board would go ahead and lobby the government to set up the bank, a university and an insurance company.
A bank is needed to disburse loans to businessmen, especially to the CMSMEs, as the existing commercial banks are reluctant to lend to firms without collateral.
“So, we aim to provide collateral free loans for firms in the sector,” he added.
