'Consumers won't benefit from rate cut on import financing'

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FE Report
The country's leading bankers said Thursday consumers will not be benefited from reduction of interest rate on import credit unless the business community comes forward with a commitment to bring down the prices of commodities proportionately
The businessmen should be made accountable while they will remain committed towards reduction of the prices of imported essentials in line with the fall of import lending rates, the bankers noted.
The recommendations came at a special meeting of the Association of Bankers, Bangladesh (ABB), held at its official in the city Thursday with its Chairman M Aminuzzaman in the chair.
The meeting also discussed different issues such as the responsibilities of the bankers for non-realisation of export proceeds, 1.0 per cent general provisioning against off-balance sheet financing and disbursement of agriculture credit for post-flood rehabilitation programmes.
"The consumers will not benefit from the reduction of lending rates on imports of essentials unless the businessmen make commitment," M Aminuzzaman told reporters after the meeting, adding that the government has to get commitment from the business community in this regard.
The bankers' observations came after the central bank Tuesday last issued a directive relating to cut in the lending rates on import financing for 10 commodities to help curb the price hike of the essentials in the local markets.
The bankers also noted that they would bring a qualitative change in the disbursement of agricultural loan as they have committed an amount of Tk 11.00 billion for the post-flood crop rehabilitation.
For the first time, 39 foreign and local private commercial banks, along with the eight state-owned banks and financial institutions, have already allocated their funds for the agricultural credit.
About the central bank's directive to maintain 1.0 per cent provisioning against off-balance sheet financings, the bankers also decided to send a letter to the Bangladesh Bank requesting it to allow banks to implement the directive over a period of four years through 0.25 per cent provisioning annually.
On August 7, the BB asked the commercial banks to keep a general provision of 1.0 per cent against off-balance sheet financings that will come into effect from December 31 next.
The bankers requested the central bank to amend the existing guidelines on foreign exchange transactions that make the bankers responsible for non-realisation of export proceeds. They want to remain free of such obligation to facilitate unhindered growth of business, particularly that of the readymade garment.