15 banks, 10 FIs identified as poor performers
Wednesday, 29 September 2010
FE Report
Bangladesh Bank (BB) has identified 15 commercial banks and 10 financial institutions as poor performing organisations in disbursement of loans to small and medium enterprises (SMEs).
"We've identified the banks and non-banking financial institutions (NBFIs) with the help of International Finance Corporation (IFC), an arm of the World Bank Group," a senior central official told the FE Monday.
An IFC consultant is now working with the central bank to develop the overall monitoring system of the SME sector, the BB official added.
The banks and NBFIs have distributed SME loans in the range between 8.0 per cent and 35 per cent of their targets until June this calendar year, when 96 per cent of the overall target has been achieved.
The loans are given to more than 60 SME sectors such as light engineering, handicraft, flower, fish processing, handloom, rice mill, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser.
The central bank has started a series of review meetings with the banks and NBFIs separately beginning Monday to provide policy advice for improvement of their performances on disbursement of the SME loans.
The BB has asked the banks and NBFIs to strengthen the SME loans disbursement across the country, the central bank officials said.
Bangladesh Bank (BB) has identified 15 commercial banks and 10 financial institutions as poor performing organisations in disbursement of loans to small and medium enterprises (SMEs).
"We've identified the banks and non-banking financial institutions (NBFIs) with the help of International Finance Corporation (IFC), an arm of the World Bank Group," a senior central official told the FE Monday.
An IFC consultant is now working with the central bank to develop the overall monitoring system of the SME sector, the BB official added.
The banks and NBFIs have distributed SME loans in the range between 8.0 per cent and 35 per cent of their targets until June this calendar year, when 96 per cent of the overall target has been achieved.
The loans are given to more than 60 SME sectors such as light engineering, handicraft, flower, fish processing, handloom, rice mill, jamdani, Rajshahi silk, khadi, bio-gas and compost fertiliser.
The central bank has started a series of review meetings with the banks and NBFIs separately beginning Monday to provide policy advice for improvement of their performances on disbursement of the SME loans.
The BB has asked the banks and NBFIs to strengthen the SME loans disbursement across the country, the central bank officials said.