The much needed credit flow for the private sector is very low and depressing due to over cautious steps taken by the commercial banks, said ICCB President Mahbubur Rahman while inaugurating the ICC workshop on ‘Credit Risk Management & Trade Finance’ organized by International Chamber of Commerce (ICC) – Bangladesh, the world business organization at a local hotel in the city on Saturday (07-12-2013).
ICCB President said, a number of state-owned and private commercial banks are faced with huge loan default due to fraudulence practices by some officials of few commercial banks (both public and private) in connivance with some ill-motivated unscrupulous clients.
‘More than Tk.4,000 crore have been siphoned out from two state-owned banks alone. In not too distant future, you may have equally alarming news alert such siphoning in Private Commercial Banks’ he added.
These have raised serious question as to the efficiency of the bank managements including the board as well as the Central Bank’s failure to take drastic and timely action to stop such practices, observed ICCB President.
ICC has been globally campaigning for trade facilitation deals. To avail of trade facilitation opportunities and also to become a middle income country within the next few years, Bangladesh must create a congenial environment for development of a sustainable private sector.
For this, credit to the private sector as well as investment to the infrastructure is of utmost importance, ICCB President added.
However, to provide credit to the private sector the commercial Banks and financial institutions must have develop sound and accountable credit management system to avoid risks, he cautioned.
Mamun Rashid, Chairman, ICCB Standing Committee on Banking, Technique & Practices said, because of interference one of the pioneer of the NCBs Janata Bank is suffering for survival. However, he hoped that once Bangladeshi Trade Manager will be taken of global Trade Finance Manager Position.
Mohammed Hossain, Former National Fraud Risk Detection and Mitigation Adviser of Bangladesh Bank in his address mentioned after completion of the workshop the participants will be able to solve many of the problems regarding credit to their day to day banking operations.
Johnson Chang, Credit Risk Officer, HSBC Bangladesh told that the participants ultimately will contribute to the growth of the economy through their expertise.
The workshop was conducted by Dr Toufic Ahmad Choudhury, DG BIBM; Chang, Chief Risk Officer, HSBC and Mohammed Hossain, former CEO and Managing Director , Sonali bank.
A total of 88 senior and mid-level executives from banks and financial institutions attended the workshop.