CSR contribution, a new yardstick for banks in future ratings : Atiur
Monday, 17 May 2010
FE Report
CSR contribution is set to come as a yardstick for the banks in their future ratings- Bangladesh Bank Governor Dr. Atiur Rahman said Sunday, asking the country's financial institutions to gear up their social initiatives.
Corporate Social Responsibility- he said, could potentially increase the clientele base of the financial institutions by helping to brighten up their image while acting as a potential branding instrument.
"In the future, a bank's performance will not be rated merely on conventional parameters but their credit disbursements in SME and agriculture as well as CSR contribution are also to come into play", Atiur said in the city.
"These parameters are also likely to included in the next CAMELS rating and other similar performance evaluators to ensure more transparency and competitiveness in such activities", the BB Governor said at Exim Bank's scholarship distribution ceremony.
The BB Governor's view came a day before the central bank publishes its first Corporate Social Responsibility report documenting all the ongoing CSR initiatives of the country's financial institutions.
"The report would give us a comparative picture of the CSR activities taken up by the local banks which would help us in evaluating their contribution to the society", Atiur said.
Underpinning the importance of social responsibility at the corporate level, BB governor pointed that CSR succeeds to reach those underprivileged people of the society whose the market usually can't serve.
Hailing the recent impetus given by the local banks in CSR initiatives, the central bank boss also urged the country's foreign banks to invest more in social activities.
"The total contribution of the country's banks in CSR has jumped by 35 percent to reach Tk. 554 million in 2009 and it is poised to grow further in the present year", he said.
"The country's commercial banks together can embark on mega scale CSR initiatives like setting up of a large international standard university or hospital which can have significant impact on our education or health sector", Atiur added.
Later, he also distributed scholarship cheques among the poor meritorious students. About 500 new students have been nominated for Exim Bank scholarship this year, taking their total tally to more than 1500.
Speaking on the occasion, Exim Bank Chairman Md. Nazrul Islam Mazumder urged the authorities to reconsider the high tax imposed on the CSR initiatives of the banks.
CSR contribution is set to come as a yardstick for the banks in their future ratings- Bangladesh Bank Governor Dr. Atiur Rahman said Sunday, asking the country's financial institutions to gear up their social initiatives.
Corporate Social Responsibility- he said, could potentially increase the clientele base of the financial institutions by helping to brighten up their image while acting as a potential branding instrument.
"In the future, a bank's performance will not be rated merely on conventional parameters but their credit disbursements in SME and agriculture as well as CSR contribution are also to come into play", Atiur said in the city.
"These parameters are also likely to included in the next CAMELS rating and other similar performance evaluators to ensure more transparency and competitiveness in such activities", the BB Governor said at Exim Bank's scholarship distribution ceremony.
The BB Governor's view came a day before the central bank publishes its first Corporate Social Responsibility report documenting all the ongoing CSR initiatives of the country's financial institutions.
"The report would give us a comparative picture of the CSR activities taken up by the local banks which would help us in evaluating their contribution to the society", Atiur said.
Underpinning the importance of social responsibility at the corporate level, BB governor pointed that CSR succeeds to reach those underprivileged people of the society whose the market usually can't serve.
Hailing the recent impetus given by the local banks in CSR initiatives, the central bank boss also urged the country's foreign banks to invest more in social activities.
"The total contribution of the country's banks in CSR has jumped by 35 percent to reach Tk. 554 million in 2009 and it is poised to grow further in the present year", he said.
"The country's commercial banks together can embark on mega scale CSR initiatives like setting up of a large international standard university or hospital which can have significant impact on our education or health sector", Atiur added.
Later, he also distributed scholarship cheques among the poor meritorious students. About 500 new students have been nominated for Exim Bank scholarship this year, taking their total tally to more than 1500.
Speaking on the occasion, Exim Bank Chairman Md. Nazrul Islam Mazumder urged the authorities to reconsider the high tax imposed on the CSR initiatives of the banks.