The Bangladesh Association of Banks (BAB) and the Association of Bankers, Bangladesh (ABB) have joined forces to help reduce non-performing loans and strengthen the banking sector’s capital base.
Chairmen of BAB member banks and managing directors representing ABB met Bangladesh Bank Governor Md Mostaqur Rahman at the central bank’s headquarters on Tuesday, following an initiative by BAB to strengthen coordination between the two organisations, BAB said in a press release on Wednesday.
At the meeting, BAB Chairman Abdul Hai Sarker highlighted several recent central bank initiatives, including an exit policy, key performance indicators for managing directors, proposed amendments to the Bank Company Act and the allocation of funds to revive closed mills and factories.
He also requested the central bank to ease dividend payout rules and remove the 75-year age limit for independent directors.
The governor welcomed BAB’s initiative to bring the two associations together. He stressed the need to reduce bad loans, expand credit, particularly to agriculture and small and medium-sized enterprises, and reduce banks’ dependence on treasury bills.
He also called on banks to establish research units to develop financial products that support inclusive economic goals.
The meeting decided that joint sessions involving BAB, ABB and Bangladesh Bank would be held every three months.
BAB Vice Chairmen Monzurur Rahman, Romo Rouf Chowdhury and Sharif Zahir, along with A S M Shahidullah Khan and Md Mehmood Husain, attended the meeting.
Managing directors of Eastern Bank, United Commercial Bank, Pubali Bank, Trust Bank, NRB Bank, Mutual Trust Bank and ONE Bank represented ABB. Bangladesh Bank deputy governors and senior officials were also present.
