B Mirror Report : Finance Adviser Dr Salehuddin Ahmed said Bangladesh’s economy is gradually stabilising and demonstrating resilience despite inheriting a difficult macroeconomic situation from the previous administration.
“We took charge amid a fragile macroeconomic environment, but stability has now returned to the macro economy. Inflation remains high and extremely sensitive. It cannot be managed by monetary policy alone supply-side interventions and market discipline are equally important. Excessive profiteering and hoarding cannot be curbed only through enforcement; cooperation from wholesalers, traders and retailers is vital,” he said.
Dr Salehuddin was speaking at the publication ceremony of the 7th edition of the Banking Almanac held at the CIRDAP International Conference Centre in the capital.
He also urged policymakers, economists and the media to work together to present a balanced picture of Bangladesh’s successes and challenges, expressing optimism that with collective efforts the country can move towards becoming a stronger and more respected economy.
Syed Ziauddin Ahmed, Executive Editor of the Banking Almanac, delivered the welcome address, while Project Director Abdar Rahman introduced the publication.
Finance Secretary Dr Md Khairuzzaman Mozumder, Financial Institutions Division Secretary Nazma Mobarek, Bangladesh Bank Deputy Governor Nurun Nahar, Bangladesh Association of Banks (BAB) Chairman and Dhaka Bank PLC Chairman Abdul Hai Sarker spoke as special guests.
The programme was chaired by Dr Hossain Zillur Rahman, Acting Chairman of the Board of Editors of the Banking Almanac and former adviser to the caretaker government. Mohammad Emdadul Haque, Executive Editor of the Banking Almanac, delivered the vote of thanks. Mohammed Nurul Amin, member of the Board of Editors and former ABB chairman, and HSBC CEO Mahbub ur Rahman also addressed the event.
The Finance Adviser said major banking indicators such as capital adequacy, provisioning, credit growth, retained earnings and credit-deposit ratios reflect both ongoing stress and gradual adjustment in the sector.
“Although the 2024–25 period remains more challenging than earlier phases like 2010, data indicate that corrective actions are slowly yielding results. Credit growth has slowed and risk recognition has improved in several banks,” he noted.
Emphasising the importance of reliable data, he said selective dissemination of key financial indicators rather than releasing entire volumes can support credible, evidence-based analysis of the banking sector and the wider economy. Responsible use of such data, he added, would help counter misinformation and improve public understanding.
On interest rates, Dr Salehuddin explained that reducing rates is a complex process involving treasury bill yields, bank deposit rates and liquidity management.
“Although treasury bill yields have declined in recent months, their full effect on market rates takes time. A careful balance is required, as excessive dependence on government instruments could divert funds from banks and weaken financial intermediation,” he said.
Addressing inflation, he reiterated that price pressures cannot be tackled through monetary policy alone. Efficient supply-side management, strong market monitoring and cooperation among traders and wholesalers are necessary, while enforcement measures by themselves are insufficient to prevent hoarding or excessive profit-taking.
The Finance Adviser said Bangladesh’s development has been cumulative, built through decades of sustained effort. Despite ongoing challenges such as inequality, poverty and distortions in agricultural pricing, he said the country has achieved notable economic and social progress.
He cautioned against excessive pessimism, warning that overly negative narratives can erode confidence and damage Bangladesh’s international image. Policy decisions, he added, must not be driven by populism or narrow interests, as fiscal and monetary policies need to balance competing priorities to ensure overall stability.
Despite criticism, Dr Salehuddin expressed confidence that ongoing reforms are laying the foundation for a more stable and resilient economy.
The former Bangladesh Bank governor also said that preliminary financial data and analytical publications prepared under difficult circumstances have played a crucial role in enhancing transparency and informed policymaking. He acknowledged the contributions of Bangladesh Bank, banks, financial institutions and banking associations in sustaining such efforts despite funding constraints.
Finance Secretary Dr Khairuzzaman Mozumder said the country’s financial sector had experienced a crisis over the past one and a half years, but the situation is now improving, noting that problems related to L/C payments have eased.
He added that several troubled banks are now recovering, while efforts are underway to repay depositors of some financial institutions.
Financial Institutions Division Secretary Nazma Mobarek described the Banking Almanac as a “statistical handbook” for stakeholders, policymakers and researchers, saying such publications can serve as early warning tools for identifying economic risks.
Bangladesh Bank Deputy Governor Nurun Nahar said producing such research-oriented publications is a laborious task, but they are essential in supporting informed decision-making in the banking sector.
BAB Chairman Abdul Hai Sarker said decisions on lowering interest rates depend on government policy rather than the association. He also termed the Banking Almanac an important resource for the financial sector and a useful guide for potential investors considering Bangladesh.
