Print

INSTITUTIONAL FRAGILITY OF CENTRAL BANKING IN BANGLADESH

MONTHLY BANGLADESH ECONOMIC UPDATE, MARCH, 2016

MEU-March-2016The current issue of the Bangladesh Economic Update reveals the institutional fragilities of the country’s central bank against the backdrop of low effectiveness of monetary policies and poor risk management, driven by lax oversight and captured governance, resulting in scams, declining growth in disbursement of credit to private sector, rising non-performing loans, and excess liquidity.  Noting the linkage between expansion of credit and growth in investment, the Unnayan Onneshan cautions that sluggish rate of growth in private sector credit will further drag down investment and consequently slide down the expansion of the gross domestic product (GDP). Pointing to the increased non-performing loans and low returns on asset and equity, the think-tank observes that the sector is inundated with severe structural rigidities resulting in the disappointment of risk management in the sector. The Unnayan Onneshan recommends improvement in supervision and regulatory capacity of the central bank and streamlining of enforcement of prudential guidelines in order to check the incidences of scams and fraudulence and thus to ensure efficacy of risk management in the banking system.

FULL REPORT

ENGLISH PRESS RELEASE

BANGLA SUMMARY

Contact us

16/2 Indira Road, Farmgate
Dhaka-1215, Bangladesh
G.P.O Box #2251

Tel: (+88 02) 58150684, 9110636
Fax: (+88 02)  58155804
Mail: This email address is being protected from spambots. You need JavaScript enabled to view it.