Bangladesh Bank Governor Ahsan H. Mansur has assured customers that their deposited money in weak banks will be returned. He said, “You will get your deposited money back. However, it will take some time, and the money will be refunded in phases.”
On Tuesday (January 28), at an event for the publication of the Microcredit Regulatory Authority (MRA) report on the microfinance situation in Bangladesh, held at the SIRDAP auditorium in the capital, he made this statement.
The event was chaired by Mohammad Helal Uddin, Executive Vice Chairman of the Microcredit Regulatory Authority, and was attended by Nazma Mobarak, Secretary of the Financial Institutions Division, and Md. Fazlul Kader, Managing Director of the Palli Karma-Sahayak Foundation (PKSF).
In response to a question, Ahsan H. Monsur said, “I have personally been advising for the last 10 years not to keep money in the S. Alam bank. But you chose to keep your money there because they offered two percent higher interest, and now you’ve been caught.”
The governor said, “Now we will rescue you; but it is not possible right away. We will do it step by step, and you will need to give us some time. We are heading towards the Bank Resolution Act, and some banks will need to be merged. A lot will be done, and it will happen. Perhaps a lot will be done this year. What I can say is that you will get your money, and you will receive bonds or something.”
PKSF’s Managing Director, Fazlul Kader, recommended reviewing the role of microfinance currently being distributed in terms of sustainable and inclusive financing.
He said that currently, it is claimed there are 64 million microfinance borrowers. However, when adjustments for overlapping are made, the number will be much smaller. In his opinion, it won’t exceed 30 million. In that case, it needs to be examined whether unsustainable loans are increasing.
Fazlul Kader further stated that 22 government institutions are running various microfinance activities. He raised the question of whether there is a need for these initiatives.
In this regard, the Governor stated that it is necessary to assess whether the microfinance activities running in 22 government ministries are justified. He believes that there is no need for the government to continue such microfinance activities.
Liberty News correspondent reports that in the fiscal year 2023-24, MRA-certified microfinance institutions distributed loans amounting to 3 lakh crore taka among customers. This represents a 5.26% increase compared to the previous fiscal year.
LND/SAKIB
