Bangladesh Association of Banks (BAB), an organization of private bank entrepreneurs and directors, has written to the Governor of Bangladesh Bank for another 6 months to extend the term loan repayment period considering the prevailing situation in the country.
However, several members of the organization opposed this request. Chairman of the organization. The letter signed by Nazrul Islam Majumdar was sent to the central bank on July 31. Abdur Rauf Talukdar was the Governor of the Central Bank at that time. He later resigned in the context of a change in government.
The letter of the association of bank owners mentioned, ‘Term loans were considered overdue after 6 months from the due date of payment of installments. But recently the central bank has changed this rule. It is informed that the overdue period will be counted from next 30th of September, after 3 months, and from the 31st March next year from the day after the due date of payment.
The organization says, “Taking into account the current situation, there is a need to implement it from March 31 next year instead of September 30, 2024.”
However, several members of BAB said that there was no discussion with them before giving this letter. They said, ‘Usually no decision is taken after discussing with us in BAB. The chairman runs the organization as per his wish.
The banks of the country are doing well now, the participation of these banks in the executive committee of the organization is not much. As a result, there is a question of whether the demands mentioned in this letter are the demands of all the banks, they said.
Terming the demands of the letter as very ‘regressive’, the chairman of a leading bank said, “The student movement and the subsequent unrest have certainly caused business losses. But there is no such loss due to which traders have to give such benefits. The steps taken by Bangladesh Bank to ensure good governance were very good, it is better not to go beyond it.
In this regard, a senior official of the Central Banking Regulations and Policy Department said that there is no opportunity to provide these benefits. Because the IMF has also advised in this regard. The new government will work with transparency.
Sources: BAB.
