B Mirror Report: The International Finance Corporation (IFC), a member of the World Bank Group, has expressed interest in providing liquidity support and trade facilitation to help address the growing capital shortfall in Bangladesh’s banking sector and revive international trade.

Finance Minister Amir Khasru Mahmud Chowdhury shared the development while speaking to journalists on the sidelines of the ongoing World Bank-IMF Spring Meetings in Washington.

He said the IFC is considering conducting bank-level assessments as part of broader financial sector reforms and may inject capital into weak banks to strengthen their balance sheets. The initiative is expected to ease liquidity pressures in the market and increase credit flow to the private sector.

“The IFC is not only interested in supporting banks but also in assisting private sector companies facing capital shortages,” the finance minister said, adding that discussions also included reviving shuttered enterprises through foreign investment.

He noted that the IFC has taken into account the significant capital erosion in Bangladesh’s banking sector, partly caused by currency depreciation, and is keen to provide both liquidity and trade support in response.

The minister also highlighted a proposal to raise funds by securitizing major government assets and utilizing them in the capital market. This, he said, would reduce the government’s direct financing burden on projects and free up resources for new investments.

He expressed optimism that IFC’s investment and technical assistance would help stabilize the banking sector and the broader economy, while also contributing to job creation.

Earlier in the day, the finance minister held meetings with officials from the International Organization for Migration (IOM) and US-based investment bank JPMorgan, where discussions focused on capital market development.

Describing the current state of Bangladesh’s capital market as weak, he said the government is planning to introduce new financial instruments, including bonds, to strengthen the market. “JPMorgan’s involvement will send a positive signal to international investors and boost confidence in Bangladesh’s flagship companies,” he added.

In talks with IOM, emphasis was placed on improving the skills of migrant workers and reducing financial exploitation. The discussions also covered measures to enhance training and protection for workers heading to the Middle East and Malaysia, as well as exploring new labor markets in Europe and Japan.

The finance minister further said the government is working to build a “creative economy” by transforming products from rural cottage industries into commercially viable goods for both domestic and international markets. Plans are also underway to incorporate sports and culture-based economic activities into GDP calculations.

He stressed the need to restore investor confidence by addressing past irregularities in the capital market and reaffirmed the government’s goal of upgrading Bangladesh from a frontier market to an emerging market.

“All investment initiatives will prioritize job creation, along with returns, value for money, and environmental considerations,” he said, adding that no project will be undertaken without clear employment benefits.