Bangladesh Bank Governor Dr Ahsan H Mansur has called on businesses across the country to ensure proper compliance with regulatory frameworks, emphasising that the central bank will remain vigilant in monitoring adherence to financial guidelines.
Dr Mansur made the remarks during a courtesy meeting with the Board of Directors of the Dhaka Chamber of Commerce and Industry (DCCI), led by its President Taskeen Ahmed, at the Bangladesh Bank headquarters on Thursday.
During the meeting, DCCI President Taskeen Ahmed highlighted the difficulties faced by businesses, particularly in light of the recent hike in VAT and tax rates, which he said have intensified economic pressures. "The high bank interest rates are significantly increasing the cost of doing business," he remarked.
Taskeen Ahmed suggested that lowering interest rates could facilitate the flow of credit to the private sector and stimulate investment.
He also addressed the challenges encountered by small and medium-sized enterprises (CMSMEs), pointing out that complex documentation requirements for accessing the Credit Guarantee Scheme often leave entrepreneurs struggling to secure necessary funding.
In response to the current economic climate, Taskeen Ahmed proposed extending the loan classification period by at least three to six months to provide businesses with more time to adjust and improve repayment capabilities. Additionally, he called for relaxing some of the stringent policies surrounding the establishment of overseas business offices, which he believes would encourage export and investment activities.
Governor Dr Mansur assured the DCCI delegation that Bangladesh Bank has been taking proactive measures to manage inflation and stabilise the market.
He expressed optimism that these efforts would soon yield positive results, especially with inflation expected to decrease in the coming months.
"We have directed banks to open letters of credit (LCs) without margin requirements to help stabilize the prices of essential goods, particularly ahead of Ramadan."
Regarding currency stability, Dr Mansur reassured the business community that there is no shortage of dollars in the market. He noted that while Bangladesh Bank does not control the exchange rate, it closely monitors the market to ensure dollar price stability.
"The exchange rate is determined by the forces of supply and demand, but we are committed to ensuring the stability of the dollar in the market," he said.
The Governor mentioned that if inflation falls to around 7% by June-July 2025, bank interest rates could potentially decrease, benefiting businesses in the long term.
In response to the DCCI President's request, Dr Mansur confirmed that Bangladesh Bank would review the possibility of extending the loan classification deadline and relaxing the conditions for setting up overseas business offices.
While expressing his commitment to supporting the business community, Dr Mansur urged businesses to strictly adhere to regulatory frameworks to ensure the stability and growth of the economy.
"We will be strict about compliance, and businesses must adhere to regulations to maintain a healthy financial ecosystem," he said.
Senior officials from both Bangladesh Bank and DCCI, including DCCI Senior Vice President Razeev H Chowdhury and Vice President Md Salem Sulaiman, were present at the meeting. —UNB
