Finance Adviser Dr Salehuddin Ahmed on Monday said the next elected government would face major economic challenges despite the interim government's efforts to stabilise the economy.
"The interim government has tried to keep the economy relatively stable and has tackled many challenges. However, the challenges ahead are even bigger," he said while addressing the Sonali Bank Annual Conference 2026 as the chief guest at International Convention City Bashundhara in the capital.
He acknowledged that the reforms undertaken so far were not sufficient but would be helpful for the next government.
"But the challenges that lie ahead need to be handled more tactfully," he added.
Advising Sonali Bank officials to maintain professionalism during the tenure of an elected government, the finance adviser warned that political pressure would inevitably arise.
"You cannot always say no directly. Instead, you need to develop negotiation skills and explain economic policies, banking laws, and audit norms," he said, recommending dialogue and mutual understanding in loan disbursement decisions.
He also urged banks to prioritise small and medium enterprises (SMEs) over large business groups for loan disbursements, noting that SMEs play a crucial role in employment generation.
"They deserve more credit support, while loans to large businesses involve higher risks," he said.
Speaking as a special guest, Bangladesh Bank Governor Dr Ahsan H Mansur said state-owned commercial banks were capable of disbursing loans but had consistently failed to recover those on time due to weaknesses in borrower selection.
He said if loans were disbursed after proper assessment and selection of borrowers, the risk of those becoming non-performing would remain minimal.
However, prolonged regulatory restrictions on state-owned banks had created excessive caution in lending operations, resulting in poor loan recovery performance, he also said.
Dr Mansur noted that due to these constraints, loan flows had to be kept limited in the past.
He added that even before 2000, lending by state-owned banks remained restricted, which he described as an unsustainable business model.
Collecting deposits without channelling them effectively into the broader economy would limit a bank's overall contribution, he said.
While Sonali Bank was currently disbursing loans cautiously, he emphasised that the time had come to expand lending activities more boldly.
Highlighting sectoral gaps, the governor said although consumer lending and housing finance were globally significant sectors, state-owned banks in Bangladesh had failed to play a meaningful role in these areas.
He pointed out that despite strong potential, progress in consumer lending remained limited, leaving ample room for expansion.
Stressing the need to transform Sonali Bank into a fully commercial institution, Dr Mansur said the bank was currently operating under a partially commercial framework.
He called for broader adoption of commercial banking principles to ensure profitability and sustainability.
The governor added that the government would grant Sonali Bank greater autonomy to operate under true commercial principles, and he hoped future governments would continue this policy.
He also urged the bank to take effective initiatives to boost remittance inflows and facilitate exports further to build up the stock of foreign currencies.
At the event, Sonali Bank Chairman Mohammad Muslim Chowdhury stressed the need for greater autonomy under the bank's new PLC structure.
He said the board should be given the authority to appoint and remove the managing director to ensure corporate governance.
"Hold the board accountable. Evaluate performance and make changes accordingly," he urged government officials.
Currently, appointments and promotions of managing directors and senior officials at state-owned banks are made by the government.
Sonali Bank Managing Director Md Shawkat Ali Khan said the bank aimed to reduce its default loan ratio to 10-12 per cent by this year and bring it down to a single digit next year.
Once the non-performing loan ratio reached 9 per cent, he said, the bank would focus on expanding export financing.
Sonali Bank, the country's largest bank with 1,234 branches, including two overseas ones, reported an operating profit of Tk 80.17 billion in 2025, which was Tk 23.22 billion higher than in 2024.
During the same period, deposits rose to Tk 1.79 trillion, an increase of Tk 150 billion from the previous year.
Loan disbursements also increased by Tk 55.0 billion on a year-on-year basis, bringing the total outstanding loans to Tk 1.05 trillion.
Finance Secretary Dr Md Khairuzzaman Mozumder and Financial Institutions Division Secretary Nazma Mobarek also spoke at the inaugural session of the bank's annual conference.
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