Moeen urges banks to encourage businesses to import essentials

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FE Report
Chief of Army Staff General Moeen U. Ahmed has urged the banks to encourage businessmen, particularly small and medium ones, for importing essential items including food grains to meet the growing demand in the local markets.
"You can help create an alternative to the existing syndicate so that (new) importers can keep price stable in the market," the army chief said while addressing at a meeting with the members of the Bangladesh Association of Banks (BAB) and managing directors of the private commercial banks (PCBs) at the BAB office Tuesday.
He also suggested the banks to take initiatives to remove fear and panic among businessmen and motivate them to make fresh investment in different sectors.
On March 12 last, the central bank directed the banks to promote businesses, particularly small and medium ones, for opening fresh letters of credit (LCs) against imports to ensure sufficient supply of commodities in the markets.
The Bangladesh Bank (BB) also asked the banks to be flexible while opening fresh LCs for import of essential commodities.
The army chief was informed that some bankers created panic among their clients using different techniques after promulgation the state of emergence.
"It is one kind of blackmailing. This must not be done," he noted.
Moeen said the caretaker government had not issued any fresh instructions to the banks relating to submission of bank account statements of any individual.
Currently, the banks have to submit cash transaction reports (CTRs) amounting to Tk 0.50 million and above to the central bank in line with the practices that have been in force over the years.
The army chief also called upon the banks to come forward to invest in different sectors particularly infrastructures, power, small and medium enterprises (SME) and agricultural sector through syndication, or individually.
"We help together to build the nation. We have a lot of resources that will be utilised," the army chief, who is also chairman of the Trust Bank Limited, observed.
The army chief answered to various questions raised by the chairmen, directors and managing directors of the PCBs at the meeting.
The BAB chairman and former Finance Minister M Syeduzzaman welcomed the army chief to attend the meeting and described the objectives of the apex trade body of the private commercial banks.
"The BAB today covers two-third of the financial activities in the banking sector and works to protect our own interest and image," he said, adding that excess liquidity should be properly used to address the supply side issue.
The BAB, an apex forum of the country's private commercial banks (PCBs), has now 29 members out of a total of 30 PCBs operating in the country.
"We are very happy that the army chief as a chairman of the Trust Bank Limited has joined our meeting," the BAB chairman told the FE after the meeting, adding that the PCBs are willing to invest different sectors including SMEs and agriculture sector.
UNB adds: Army Chief General Moeen U Ahmed said some bankers were trying to blackmail their clients by threatening to disclose their bank account information.
He said some of the bankers threatened their clients that they would disclose their bank account information to the taskforce on serious crimes. "It's a kind of blackmailing," he told bankers at a meeting of Bangladesh Association of Banks (BAB), an organisation of private bank owners, at its office.
Gen Moeen said the bankers have become more active in reporting transactions of over Tk 5,00,000 to the Bangladesh Bank after the proclamation of the state of emergency, creating panic among the businessmen. "Now they (businessmen) are scared of continuing their normal business."
He told the meeting of bankers that the government has also initiated steps to develop a system to supply commodities directly to the consumers from the source through dismantling the cycle of middlemen.
The Army chief called upon the bankers to give special attention to agriculture, agro-processing and SMEs sectors as well as post-flood rehabilitation programmes.
He also urged them to arrange syndicated loan for development of big infrastructure projects.