Bangladesh Bank (BB) Governor Fazle Kabir on Monday asked the chief executives of scheduled banks and financial institutions (FIs) to be more active in controlling the classified loans for sustaining the economic growth and maintaining stability in the financial sector.
“Despite some uncertainty in the world economy, Bangladesh economy demonstrated a notable resilience and stability in 2016. To maintain the financial stability, we should take more measures by ensuring good governance in the sector,” he said while addressing a programme with BB officials and chief executive of banks and financial institutions.
The programme was organised at the central bank Headquarters to launch BB’s annual “Financial Stability Report 2016”.
Fazle Kabir also advised the bank and FIs to strengthen efforts for avoiding any unexpected incident in the sector for maintaining the financial stability like previous year.
He stressed on building a high standard risk management culture in the banks and FIs to check any kinds of unexpected risk saying that banks and FIs will have to take more effective steps to tackle the cyber risk which has been creating new worries globally.
Among others, BB Deputy Governor Shitangshu Kumar Sur Chowdhury and Association of Bankers, Bangladesh (ABB) Chairman Anis A Khan spoke on the occasion.
SK Sur Chowdhury emphasised on effectively use of the Macroprudential Supervision strategy to tackle systematic risk in the financial sector.
He suggested the banks and FIs to take programmes by maintaining coordination with the Vision-2021 and Sustainable Development Goals (SDGs).
According to the report, the domestic macro-economic situation was mostly favorable in 2015-16 financial year (FY16). A real GDP growth of 7.1 percent was recorded in FY16 against the growth of 6.5 percent recorded in FY15.
Inflation declined to 5.9 percent in FY16 from 6.4 percent in FY15 attributable to accommodative money growth, lower fuel and commodity price in the international market and sufficient domestic food supply. It is noteworthy that at end-December 2016 general inflation stood at 5.5 percent against 6.2 percent of end-December 2015.
The current account balance in the balance of payments recorded notable surplus owing to the reduced deficits in trade, service and income accounts. The gross foreign exchange reserves stood at USD 32.1 billion at end-December 2016.