Build defences against global financial crisis: Atiur

Bangladesh Bank Governor Dr Atiur Rahman said the small and open economies need to keep on building the defences in advance against global financial crisis.  "Bangladesh has exactly been doing this by developing financial inclusiveness as an effective instrument of promoting both output stability and financial stability," said Atiur while speaking at the Annual General Meeting (AGM) of Bank of International Settlements (BIS) at Basel, Switzerland Saturday, reports BSS.
Governors of the central banks of the most of the countries of the world attended the AGM that was chaired by French Governor Christian Noyer who is also the Chair of BIS Board. After the AGM, Per Jacobsson Foundation Lecture was given by the Governor of Bank Negara Malaysia Zeti Akhtar Aziz.
Atiur said inclusive financing does this by diversifying asset portfolios and deposit bases of financing institutions among myriad of small new inclusion clients, reducing credit and liquidity risks. The governor brought to the notice of the panel the need for global level coordination with global liquidity growth appropriately tethered to global output growth.
"Otherwise, the resulting macroeconomic imbalance will lead to spillovers of inflows and outflows that will keep on destabilising small open and emerging economies," he added.
The panel agreed to Mr Atiur's concerns but could not come out with a straight response. They too advised smaller open economies to build 'stronger boats'.
Governor Zeti spoke on 'Managing Financial Crisis in an Interconnected World: Anticipating the Mega Tidal Waves'. In her lecture, Governor Zeti focused on the new challenges in the management of financial crisis which are both interconnected and internationalised.
She narrated phases of other global crisis and indicated different solutions for the future crisis.A panel discussion chaired by Governor Noyer followed her lecture which was participated by panelists Jacob Frenkel, Chairman, JPEG Morgan Chase International, Stefan Ingves, Governor, Central Bank of Sweden, Guillermo Ortiz, Chairman, Per Jacobsson Foundation and Governor Zeti.
The governor has a plan to go to Frankfurt Business School to sign a MoU between this school and Bangladesh Institute of Bank Management (BIBM) and Bangladesh Bank Training Academy (BBTA) on improved cooperation for human resource development of both the central bank-led institutions.  Besides, he will visit Deutsche Bundesbank to discuss greater technical cooperation between the two central banks.