Written by The Banking Post
The government has signalled strong support for continuing banking sector reforms initiated by the interim administration, Bangladesh Bank Governor Ahsan H Mansur said on Monday.
Speaking to reporters after a meeting with Finance Minister Amir Khosru Mahmud Chowdhury at the Secretariat, the governor said the reform agenda was discussed in detail.
“We have talked about reforms. Yes, he is positive about the measures we have taken,” Mansur said, adding that he had briefed the minister on the overall state of the banking sector.
Inflation still stubborn
The governor made it clear that lowering inflation remains a top priority.
“Inflation needs to be brought down. There is no different opinion on this,” he said.
Inflation rose to 8.58 per cent in January, driven largely by persistent food price pressures. Despite a tight and contractionary monetary stance, the rate has yet to fall below 8 per cent. The government has set a target of bringing inflation under 7 per cent by June, though there are few signs of a sharp decline so far.
The prolonged price pressure has pushed more lower- and middle-income consumers towards subsidised sales by the Trading Corporation of Bangladesh.
Focus on bad loans
The meeting also addressed rising non-performing loans (NPLs). The governor said the finance minister supports the central bank’s measures to curb defaults.
“All the bankers feel that the policies are working,” he said. “We are giving the economy some sort of relief. We have to keep the wheels of the economy running.”
As of September last year, defaulted loans stood at Tk 6.5 trillion, or 35.73 per cent of total outstanding loans, according to central bank data — underscoring the scale of the challenge.
Sammilito Islami Bank improving
Mansur also said the overall situation of Sammilito Islami Bank is gradually stabilising. Depositors are getting back their funds, and fresh deposits are coming in.
“We are trying wholeheartedly to keep the bank afloat,” he said, signalling continued regulatory support to restore confidence and ensure stability in the banking system.
