Bankers urged not to reschedule loans to delinquent borrowers
Friday, 6 January 2012
FE Report
Former caretaker adviser A.B Mirza Md. Azizul Islam has advised bankers not to reschedule loans at the last moment to enable powerful, but delinquent borrowers to participate in elections.
"….don't finance unsustainable bubble in real estate or stock prices," the former adviser said while delivering 11th Nurul Matin Memorial Lecture on 'Ethics in Banking' at a hotel in city Wednesday night.
The Bangladesh Institute of Bank Management (BIBM) organised the lecture.
Bangladesh Bank Governor Atiur Rahman presided over the function while Director General of the BIBM Toufic Ahmed Choudhury delivered the address of welcome.
The banks must ensure fair and equitable treatment of all stakeholders, the adviser said, adding that the banks must also ensure full, truthful and transparent disclosure of their financial health.
"The banks must behave as socially responsible corporate entities," Mr. Islam said, adding that social responsibility must be viewed from a wider perspective, taking into account the impact of bank's activities on growth, employment and emphatically on poverty alleviation as well.
"Our banking system is not integrated with the global financial system, the real economy is susceptible to external shocks and the banking system has not been entirely free from breach of trust", Mr. Islam also said.
Borrowing in foreign currency to lend against activities which would yield income in local currency created currency mismatch, leading to drastic depreciation of exchange rate, he said.
He urged the banks to expand operations to unbanked or underbanked sectors, regions and population groups to arrange flexible mortgage payments for poor people's housing.
The BB Governor said the ongoing financial inclusion imitative in the country's banking sector is an action agenda driven by ethical imperative, underpinned by BB guidance for mainstreaming corporate social responsibility in corporate goals, objectives and ethos of banks.
Eminent economists, bankers and policy makers, among others, were present at the lecture.
Former caretaker adviser A.B Mirza Md. Azizul Islam has advised bankers not to reschedule loans at the last moment to enable powerful, but delinquent borrowers to participate in elections.
"….don't finance unsustainable bubble in real estate or stock prices," the former adviser said while delivering 11th Nurul Matin Memorial Lecture on 'Ethics in Banking' at a hotel in city Wednesday night.
The Bangladesh Institute of Bank Management (BIBM) organised the lecture.
Bangladesh Bank Governor Atiur Rahman presided over the function while Director General of the BIBM Toufic Ahmed Choudhury delivered the address of welcome.
The banks must ensure fair and equitable treatment of all stakeholders, the adviser said, adding that the banks must also ensure full, truthful and transparent disclosure of their financial health.
"The banks must behave as socially responsible corporate entities," Mr. Islam said, adding that social responsibility must be viewed from a wider perspective, taking into account the impact of bank's activities on growth, employment and emphatically on poverty alleviation as well.
"Our banking system is not integrated with the global financial system, the real economy is susceptible to external shocks and the banking system has not been entirely free from breach of trust", Mr. Islam also said.
Borrowing in foreign currency to lend against activities which would yield income in local currency created currency mismatch, leading to drastic depreciation of exchange rate, he said.
He urged the banks to expand operations to unbanked or underbanked sectors, regions and population groups to arrange flexible mortgage payments for poor people's housing.
The BB Governor said the ongoing financial inclusion imitative in the country's banking sector is an action agenda driven by ethical imperative, underpinned by BB guidance for mainstreaming corporate social responsibility in corporate goals, objectives and ethos of banks.
Eminent economists, bankers and policy makers, among others, were present at the lecture.