Govt plans banking commission
Saturday, 6 June 2015
FE Report
The government has planned to establish a banking commission to review and recommend policy measures on the country's overall banking activities.
"We are planning to establish a banking commission to review and recommend measures on banking policies and overall banking activities," Finance Minister Abul Maal Abdul Muhith said in his budget speech on Thursday.
Substantial expansion has already taken place in the banking sector. "Now we need to determine appropriate policies regarding deposit collection and the growth path," the finance minister noted.
Shammridhi Shopan Bank
The government may allow one more commercial and development bank-- Shammridhi Shopan Bank -for the welfare of its employees, the finance minister said.
Besides pay and allowances, for the welfare of government employees, "we may take an initiative" to establish the commercial and development bank as recommended by the Pay and Services Commission, the minister explained.
Initially, this bank is expected to commence its operation with an initial paid-up capital of Tk 4.0 billion (400 crore). This paid-up capital will be collected by selling primary shares to existing and retired employees.
"The matter, however, requires further consideration," the minister noted.
Regarding financial sector reforms, the minister said banks initiated precautionary self-assessment measures to prevent instances of fraud and irregularities.
"To this end, a corporate database has been developed. Software has been installed to monitor large loans which will provide bank-wise lending information," Mr. Muhith informed the Parliament.
Alongside, annual performance agreements have been signed with the state-owned scheduled and specialised banks to ensure their result-oriented performance.
"Hopefully, it will enable these banks to meet people's expectations," he noted.
With a view to spreading economic activities throughout the country, a decision has been taken to the effect that bank branches located in the countryside will invest a substantial amount of their deposits in local activities, according to the minister.
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