Bank credits diverted to capital market
Monday, 6 December 2010
It was reported in a section of the media that some Taka 400 billion would be disbursed for small and medium enterprises (SME) sector in the current calendar year. This was the highest ever amount provisioned for the SME sector. Well over 90 per cent of the targeted amount for disbursement or Taka 380 billion has reportedly been already disbursed in the first nine months of the year.
But proper monitoring by the authorities concerned is certain to show that a great deal of the resources meant for the SME sector has not gone to it but into the share market. This is also situation in some cases of bank credit disbursements in other areas. But the point to really worry about and feel outraged is why the authorities concerned are hesitant to launch proper and timely investigations to identify the malpractice.
It would make sense if any scam is detected in right time for taking appropriate actions in time. However, the central bank at this stage can seek to only limit damages further but it is doubtful how much of the otherwise meritorious plan to boost the SME sector and also to support investment activities for productive operations it will be able to salvage.
Noor Hossain
Banani, Dhaka
But proper monitoring by the authorities concerned is certain to show that a great deal of the resources meant for the SME sector has not gone to it but into the share market. This is also situation in some cases of bank credit disbursements in other areas. But the point to really worry about and feel outraged is why the authorities concerned are hesitant to launch proper and timely investigations to identify the malpractice.
It would make sense if any scam is detected in right time for taking appropriate actions in time. However, the central bank at this stage can seek to only limit damages further but it is doubtful how much of the otherwise meritorious plan to boost the SME sector and also to support investment activities for productive operations it will be able to salvage.
Noor Hossain
Banani, Dhaka