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Govt takes slew of measures to ensure financial stability

Kamal tells parliament

FE REPORT | June 04, 2021 00:00:00

The government has taken a series of measures including formulation of a stress testing guideline to ensure financial stability in the country.

Finance Minister AHM Mustafa Kamal disclosed the government's latest initiative taken considering the systemic risks while placing the national budget for fiscal year (FY) 2021-22 in parliament on Thursday.

"To ensure stability in the financial sector, financial stability map will be prepared in future in line with international best practices and stress testing guidelines will be formulated considering the systemic risks," he said in his budget speech.

Talking to the FE, a senior official of the Bangladesh Bank (BB) said additional capital of the banks will be needed after introducing such stress testing guideline. "It will help enhance resilience of the banking sector."

The minister also said steps to form a Financial Stability Council were underway to maintain the stability of the financial sector.

A number of reforms have been undertaken with the spirit of building a good credit culture in the country, according to the minister.

"A software has been launched for the monitoring of large loans of banks through which clear idea about bank-wise large loans of the entire banking sector will be available and it will be possible to take necessary actions accordingly," he noted.

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