A banking commission will be formed soon, on the basis of which the necessary roadmap will be formulated to bring stability in the financial sector, said Bangladesh Bank Governor Dr. Ahsan H. Mansoor.

He said these things when the board of directors of Dhaka Chamber of Commerce and Industry (DCCI) headed by Ashraf Ahmed went to meet the governor on Wednesday (August 27).

Bangladesh Bank Governor Dr. Ahsan H. Mansoor said, if the existing inflation can be brought down to a tolerable level in the next 6-7 months, there will be a positive impact on the policy interest rate and bank loan interest rate among other things. The growth of bank deposit collection in double digits is absolutely essential.

The governor also said that a banking commission will be formed soon, based on which the necessary roadmap will be formulated to bring stability to the financial sector. He also advises new investors to invest in economic zones.

The governor emphasized on making credit guarantee facilities for SMEs more operational. In this case, the government borrowing rate will be limited to increase the flow of credit to the private sector.

He urged the promoters to improve their payment history and increase credibility for getting trade credit.

During the meeting, Dhaka Chamber President Ashraf Ahmed said, if the interest rate increases, there is a possibility of hindering the flow of credit, especially for SMEs. In terms of financing SMEs, Bangladesh Bank has several schemes, whose activities can be accelerated to facilitate the financing process of SMEs.

Also, in the meeting, Dhaka Chamber President requested to facilitate foreign trade credit process and foreign loan process, increase credit flow to banks. Above all, the president of Dhaka Chamber urged the central bank to take initiative on how to reduce the burden of interest on loans to SMEs.

Regarding increase in policy interest rate, he said, increasing policy interest rate is a common process to control inflation, but it is applicable for a temporary period.

Ashraf Ahmed said, it is also our expectation that the price inflation should be controlled, because as a result of the price inflation, the cost of living of the general public increases as well as the operational cost of the businessmen.

Apart from this, commenting that if it is possible to reduce the amount of bad loans of the bank, the policy interest rate will also decrease, the DCCI president said that for the development of the SME sector, support is needed to deal with the pressure of interest rate increase and to maintain the flow of loans.

At this time, Dhaka Chamber Senior Vice President Malik Talha Ismail Bari, Vice President Md. Junaid Ibn Ali, the members of the board of directors, along with the deputy governor of Bangladesh Bank Noorun Nahar and Dr. Md. Habibur Rahman and others were present.