FBCCI terms MPS a balanced one

FE Team | Published: January 31, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has termed the Bangladesh Bank's (BB) Monetary Policy Statement (MPS) a balanced one, report agencies.
In a statement Thursday, the FBCCI said the MPS has given special emphasis on increasing investment, private sector credit growth and containing inflation.
Investors and entrepreneurs will be encouraged as credit growth in the private sector has been raised to 16.5 per cent from 15.5 per cent.
The MPS for January-June period was prepared taking into consideration the recent unstable political situation of the country.
But, the FBCCI pointed out that there is no instructions for lowering bank rates.
Banks are now imposing different charges without any coordination among them, it said adding that it is increasing the cost of doing business.
Spread for all bank loans should be brought down to three per cent, the apex trade body suggested.
Meanwhile the FBCCI voiced concern over the banking system liquidity generating from inertia of the businesses to invest in productive sectors.
"Although the target for growth in the private sector credit flow was fixed at 15.5 per cent from July to December 2013, the credit flow during that period was not that satisfactory due to the absence of proper infrastructure as well as a business-friendly environment caused by political uncertainty," it said in the statement.
It said, "Besides, the expected credit flow to the private sector didn't take place because of the high interest rate and incoherent bank charges. All these have led to excessive liquidity in the banking sector."
The FBCCI cautioned that if the money could not be invested soon, it would be channelled to non-productive sectors hampering the banking system.
The banks must give special emphasis on providing easy loans for productive sectors and set sector-wise loan assistance targets to ensure investment in productive sectors, it observed.
The FBCCI feels that it is necessary to consider the quality of projects for loan assistance as well as strengthen the monitoring system.