Necessary initiatives in budget for disciplined banking sector
Mir Nasir Hossain, Former FBCCI president : The upcoming budget needs to be composed of necessary measures to restore discipline in the banking sector. Interest rates for bank loans have climbed up to an intolerable level and needs to be reduced. Government-owned banks are unable to make investments even having enough liquidity. They are charging high interest wherever the government financial institutions are willing to keep their money. All the efforts to deduce the interest are going to veins.
We have to stop the culture of subsidy. There would have been better results if the government banks capitalized every year. Bangladesh Krishi Bank is seeking subsidy to meet its Tk10 billion shortage. Adjustment in gas price needs to be phased gradually.
The government may say that they are buying gas at a higher rate. It should look into the investment costs first and then increase the price gradually. Infrastructure sector also needs to be strengthened for the sake of investment which the government is already doing.
Special consideration in the budget needs to be given to the small and medium industries for increasing internal investment. Emphasis also needs to be given on ways to reduce business expenditures. Apart from these, necessary assistance needs to be confirmed for the businessmen from the authorities concerned.