The central bank has asked the new private commercial banks (PCBs) not to go for 'aggressive' lending, for ensuing discipline in the country's banking sector.
The instruction came from a review meeting of managing directors and chief executive officers of six new PCBs, held in the Bangladesh Bank (BB) headquarters on Sunday with its Governor Dr. Atiur Rahman in the chair.
 "We've asked the banks not to go for aggressive lending, and try to avoid concentration of loans," BB deputy governor S K Sur Chowdhury told the FE after the meeting.
The central bank also advised the banks to operate in line with their business plans, previously submitted to BB before receiving licenses, the deputy governor explained.
He also said BB asked the banks to expedite their credit flow to small and medium enterprises (SME) and agriculture sector.
Nine new PCBs, including three NRB (non-resident Bangladeshis) banks, started their operations in 2013 to bring more un-banked people into the banking network.
 "We'll review performance of the three NRB banks shortly," a BB senior official said.
He also said the banks have been instructed to take effective measures, so that regular loans do not turn into classified ones.
 "We've advised the PCBs to ensure their profitability through deduction and control of expenditures," the central banker noted.
BB also asked the banks to strictly abide by the existing core risk management guidelines for improving their efficiency.
The central bank earlier identified six core risk areas in the country's banking sector. The areas are: credit, asset and liability, foreign exchange, information technology, internal control and compliance, and money laundering.
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Don\\\'t go for \\\'aggressive\\\' lending: BB
Siddique Islam | Published: April 06, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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