Bangladesh Bank Governor Ahsan H Mansur has said the country's financial sector is likely to recover from its current turmoil within the next three to four years, as a comprehensive reform plan has already been put in place.
He also projected that Bangladesh will evolve into a significantly cashless society within the next eight to ten years.
"Our main objective is to restore macroeconomic stability, particularly price stability, as without that nothing can be achieved," the governor said. "The second most important goal is to ensure financial sector stability. We have drawn up a detailed plan, and while it may take three to four years, it can certainly be achieved."
The immediate past Hasina-led regime had left a devastating impact on the country's financial sector through state-sponsored looting. The interim government is facing an uphill task in managing the fallout but has chalked out a roadmap to steer the sector towards recovery.
He made these remarks while speaking at a conclave organised by CARE Bangladesh on "The Next Frontier: Driving Development with Markets, Capital & Innovation."
Bangladesh's banking sector, he noted, is facing a deep crisis, with capital shortfalls, rising non-performing loans (NPLs), liquidity pressures, and governance failures threatening systemic stability. Investor confidence remains low, private sector credit growth is weak, and foreign direct investment has slowed, leaving the recovery fragile.
However, he stressed that bold reforms are underway under the interim government, including bank consolidation and restructuring of the revenue system. External assistance from the IMF and other development partners, along with improved export earnings and higher remittance inflows, is providing crucial support. "If sustained, these measures could pave the way for financial stabilization and restore both public and investor confidence," he added.
Dr Mansur also highlighted the government's priorities in innovation and financial inclusion. "We are ensuring greater transparency and expanding access to the unbanked population through multiple channels," he said. While microfinance institutions continue to serve rural communities, he pointed out that agent banking by formal banks has now achieved coverage almost equivalent to that of microfinance institutions.
He further emphasized the growing role of mobile financial services (MFS) in driving inclusion. "The nano loan initiative has already become popular. Every day, about 4,000 nano loans are granted, with Tk 70 billion already disbursed through mobile apps without any physical interaction," he said.
"We want to make Bangladesh far more cashless, and within eight to ten years we hope to achieve significant progress in this regard," he remarked.
The day-long CARE Bangladesh conclave featured at least five sessions: *Future of Development - The Role of the Private Sector, Green Financing, Cultivating Change, Smart Agriculture & Agri-Value Chains, and Building Human Capital for an Adaptive Economy. Each session included keynote presentations followed by discussions with renowned experts.
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