BB may issue fresh directive to banks not to harass clients

FE Team | Published: September 14, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

Siddique Islam
The Bangladesh Bank (BB) may ask the commercial banks not to harass their clients by seeking information, including the sources of money, for opening letters of credit against imports.
A central bank directive is likely to be made at a bankers' meeting to be held at the central bank Sunday next with the BB Governor Salehuddin Ahmed in the chair.
There has been an allegation made by businessmen at the different forums about unnecessary harassment by a section of bankers, official sources said.
"We have not issued any instruction to the banks for seeking information on source of money from importers. So, banks should not seek such information that can hamper business activities," a BB senior official told the FE Thursday.
He also said the banks should run their operations in line with the existing banking norms and they must be careful so that the clients are not panicked.
During the meeting, the central bank will advise the banks to come forward with positive efforts to bring dynamism in the overall economic activities through boosting confidence of the clients, especially the small imports, the sources added.
They said meeting will also focus on the country's overall economic situation including export-import position and the role of the banks in promoting businesses.
The central bank will also advise the banks to take initiatives to remove fear and panic among businessmen and motivate them to make fresh investment in different sectors.
On March 12 last, the central bank instructed the banks to promote businesses, particularly small and medium ones, for opening fresh letters of credit (LCs) against imports to ensure sufficient supply of commodities in the markets.
The BB also asked the banks to be flexible while opening fresh LCs for import of essential commodities.
Besides, the BB will ask the banks to expedite the disbursement of the agro-credit to the flood-hit framers and want to know their contribution to the post-flood rehabilitation programmes.
The central bank will also give necessary instructions to the banks to achieve their agriculture credit disbursement target by the end of this fiscal.
It has set the target for disbursement of agro-credit at Tk 76.98 billion, which includes Tk 10.78 billion for private, local and foreign banks and the rest for state-owned commercial banks -- among flood-affected farmers across the country.
The central bank will also advise the banks to invest in the housing sector and small and medium enterprises (SME) for creating employment opportunities.