Finance Adviser Salehuddin Ahmed on Saturday stated that Bangladesh’s economy is demonstrating resilience and a trend toward gradual stabilisation, despite having inherited a difficult macroeconomic landscape from the prior administration.
“We inherited a fragile economy, but now there has been stability. Inflation however cannot be controlled by monetary policy alone; supply-side measures and market discipline are crucial. Excessive profiteering and hoarding can’t be addressed by enforcement alone – cooperation from wholesalers, traders, and retailers is essential,” he remarked.
The adviser made these comments while speaking at the unveiling ceremony for the 7th edition of the “Banking Almanac,” held at the CIRDAP International Conference Centre in the capital.
Salehuddin urged collaborative action from policymakers, analysts, and media representatives to portray a balanced narrative of the nation’s accomplishments and ongoing challenges.
He stressed that sustained cooperation is vital for Bangladesh to progress toward a more robust and esteemed economic position.
The event was chaired by Hossain Zillur Rahman, acting chairman of the Board of Editors for the Banking Almanac and a former adviser to a caretaker government. Syed Ziauddin Ahmed, Executive Editor of the publication, delivered the welcome address, while Project Director Abdar Rahman introduced the new edition.
Special guests at the ceremony included Md Khairuzzaman Mozumder, secretary of the Finance Division; Nazma Mobarek, secretary of the Financial Institutions Division; Nurun Nahar, deputy governor of Bangladesh Bank; and Abdul Hai Sarker, chairman of both the Bangladesh Association of Banks (BAB) and Dhaka Bank PLC.
Mohammed Nurul Amin, a member of the almanac’s editorial board, and Mahbub ur Rahman, CEO of HSBC, also addressed the gathering. Mohammad Emdadul Haque, executive editor, concluded the program with a vote of thanks.
Discussing the banking sector, Finance Adviser noted that critical indicators – including capital adequacy, provisioning, credit growth, retained earnings, and credit-deposit ratios – reveal both current stresses and signs of corrective adjustment.
“While conditions in 2024-25 remain more difficult compared to earlier periods such as 2010, the data show that corrective measures are gradually taking effect. Credit growth has moderated, and risk recognition has improved in several banks,” he observed.
He emphasised the importance of disseminating trustworthy financial data to support credible analysis, suggesting that sharing selective, relevant indicators could aid evidence-based evaluation of the banking industry and wider economy.
Responsible use of such information, he added, would help combat misinformation and enhance public comprehension.
On monetary policy, Salehuddin explained that lowering interest rates is a multifaceted process influenced by treasury bill yields, bank deposit rates, and liquidity management.
“Treasury bill rates have declined in recent months, but their full impact on market rates takes time. Maintaining balance is essential, as excessive reliance on government instruments could divert funds away from banks, weakening financial intermediation,” he clarified.
Regarding inflation, he reiterated that price pressures remain a sensitive concern requiring more than just monetary measures. Effective supply-side management, vigilant market monitoring, and cooperation across the trade sector are indispensable, as enforcement actions alone cannot curb profiteering or hoarding.
Finance Adviser highlighted that Bangladesh’s developmental strides are the result of cumulative efforts over decades. While issues like inequality, poverty, and agricultural price distortions remain, the country has secured significant economic and social progress.
He warned against overly pessimistic narratives, which he said damage confidence and the nation’s international standing.
Policy decisions, he asserted, must not be swayed by populism or narrow interests. Fiscal and monetary strategies should instead balance competing demands to ensure overarching stability. Despite facing criticism, he expressed optimism that current reforms are establishing a foundation for a more stable and resilient economy.
Salehuddin, a former Governor of the central bank, acknowledged that preliminary financial data and analytical publications – produced under challenging conditions – have been instrumental in enhancing transparency and informing policy.
He credited Bangladesh Bank, along with financial institutions and banking associations, for their crucial role in maintaining these efforts despite funding limitations.
Finance Secretary Khairuzzaman Mozumder noted that while the financial sector endured a crisis over the past eighteen months, the situation is now shifting, with no remaining issues concerning Letter of Credit (L/C) payments.
He mentioned that several troubled banks are recovering, and initiatives are underway to reimburse depositors in affected financial institutions.
Financial Institutions Division Secretary Nazma Mobarek described the Banking Almanac as a vital “statistical handbook” for stakeholders, policymakers, and researchers, suggesting such publications can serve as early warnings for economic concerns.
Bangladesh Bank Deputy Governor Nurun Nahar praised the publication as a research-intensive and demanding endeavor that aids policymakers in formulating decisions for the banking sector.
BAB Chairman Abdul Hai Sarker commented that reducing interest rates is not solely the association’s responsibility but also hinges on government policy. He also affirmed the almanac’s significance as a key resource for the financial sector and for guiding potential investment into Bangladesh.
