Banks' rehab programmes in Aila-hit areas to be treated as CSR activities
Wednesday, 3 June 2009
FE Report
The central bank has decided to recognise all assistance to be provided by the commercial banks and financial institutions for rehabilitation of agriculture, fisheries and livestock in the country's Aila-affected areas as a part of corporate social responsibility (CSR).
The Bangladesh Bank (BB) issued a circular in this connection Tuesday instructing the chief executive of banks and non-banking financial institutions (NBFIs) to undertake rehabilitation programmes in the Aila-hit areas.
"We've taken the initiative to encourage banks and NBFIs for conducting post-Aila rehabilitation programmes in the coastal areas under their CSR programmes," Executive Director of the Bangladesh Bank (BB) ATM Nasir Uddin told the FE Tuesday.
He also said such rehabilitation programmes will be treated as CSR activities of the banks and NBFIs concerned when their overall performances are evaluated.
Besides, the central bank has asked eight sate-owned banks and financial institutions to suspend agricultural loan recovery in the Aila-hit areas for the next one year.
"We've taken the measure aiming to help Aila affected farmers in the coastal areas," a BB senior official told the FE, adding that the central bank has asked the banks not to harass the farmers in this regard.
On Monday, the government, at a regular weekly cabinet meeting, decided to suspend recovery of agro-credit in cyclone `Aila' affected areas.
"It has been decided that the loan recovery activities will remain suspended for the next one year to help farmers mitigate their losses," the central bank said in its circular.
The circular also said the banks would ensure that the farmers do not face any harassment in this regard and the respective banks "complain and loan supervision cell" would regularly monitor the situation.
Eight state-run banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
In a separate circular, the central bank said the cyclone also caused massive damage to shrimp farming in the region and asked the banks and financial institutions to reschedule the loans of the affected farmers by relaxing the down payment conditions.
The central bank has decided to recognise all assistance to be provided by the commercial banks and financial institutions for rehabilitation of agriculture, fisheries and livestock in the country's Aila-affected areas as a part of corporate social responsibility (CSR).
The Bangladesh Bank (BB) issued a circular in this connection Tuesday instructing the chief executive of banks and non-banking financial institutions (NBFIs) to undertake rehabilitation programmes in the Aila-hit areas.
"We've taken the initiative to encourage banks and NBFIs for conducting post-Aila rehabilitation programmes in the coastal areas under their CSR programmes," Executive Director of the Bangladesh Bank (BB) ATM Nasir Uddin told the FE Tuesday.
He also said such rehabilitation programmes will be treated as CSR activities of the banks and NBFIs concerned when their overall performances are evaluated.
Besides, the central bank has asked eight sate-owned banks and financial institutions to suspend agricultural loan recovery in the Aila-hit areas for the next one year.
"We've taken the measure aiming to help Aila affected farmers in the coastal areas," a BB senior official told the FE, adding that the central bank has asked the banks not to harass the farmers in this regard.
On Monday, the government, at a regular weekly cabinet meeting, decided to suspend recovery of agro-credit in cyclone `Aila' affected areas.
"It has been decided that the loan recovery activities will remain suspended for the next one year to help farmers mitigate their losses," the central bank said in its circular.
The circular also said the banks would ensure that the farmers do not face any harassment in this regard and the respective banks "complain and loan supervision cell" would regularly monitor the situation.
Eight state-run banks and financial institutions are: Sonali Bank Limited, Janata Bank Limited, Agrani Bank Limited, Rupali Bank Limited, Bangladesh Krishi Bank (BKB), Rajshahi Krishi Unnayan Bank (RAKUB), Bangladesh Rural Development Board (BRDB) and Bangladesh Samobaya Bank Limited (BSBL).
In a separate circular, the central bank said the cyclone also caused massive damage to shrimp farming in the region and asked the banks and financial institutions to reschedule the loans of the affected farmers by relaxing the down payment conditions.