Financial challenges are manageable: BB governor

Bangladesh Bank Governor Ahsan H. Mansur has dismissed concerns about the financial crisis, assuring that the prevailing challenges are manageable.

"We are not in a crisis. The issues in the financial sector are fully solvable. We won't face a situation like Sri Lanka or any other countries experiencing severe economic distress," he said at MasterCard Excellence Award 2024 at a city hotel on Saturday.

Highlighting improvements in the country's external sector, the BB governor who was present as the chief guest said the balance of payments has stabilised while there has been a rise in foreign exchange reserve and stability in the currency exchange rate. "I see no risks arising from the external factors."

About the restriction on import, Mansur announced that they will tear down all the barriers to opening letters of credit (LCs). He said that the central bank has adequate reserves to support imports of essential goods.

The governor stressed the need for broader political reforms alongside improved governance in the financial sector.

"It's not possible to find a complete solution in the financial sector without addressing political issues. While the interim government may not achieve everything within a short period of time, we have already initiated crucial steps," he added.

The BB governor acknowledged that some banks are facing liquidity crises, but reassured depositors that the situation will go away. "Depositors will not face any trouble. Bangladesh Bank guarantees this."

He hinted at significant measures to address the challenges facing weaker banks and expressed the hope that these steps would restore stability.

"We'll take bold steps to overcome these issues. I assure you that the problems will be resolved," he said.

The BB Governor handed over the Mastercard Excellence Awards to the recipients.

Trishita Maula, Acting Deputy Chief of Mission at US Embassy in Dhaka, was present as the Guest of Honor while chief executive officers of several leading banks, fintechs and merchants attended the event.

The award recipients are: Evercare Hospitals, Meena Bazar, RFL Best Buy, Transcom Electornics, Bangladesh Railway - Shohoz, Grameenphone, ShareTrip Ltd, SSL Commerz, Dhaka Bank PLC, Eastern Bank PLC, Islami Bank Bangladesh PLC, Mutual Trust Bank PLC, Lankabangla Finance PLC, Southeast Bank PLC, bKash Ltd, Bank Asia PLC, AB Bank PLC, Al Arafah Islami Bank PLC, National Bank PLC, Prime Bank, Pubali Bank PLC, The City Bank PLC , Brac Bank PLC, United Commercial Bank PLC, Standard Chartered Bank. Dutch Bangla Bank PLC.

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