Banking system liquidity worries FBCCI


The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) expressed its concern over the banking system liquidity generating from inertia of the businesses to invest in productive sectors.

“Although the target for the growth in private sector credit flow was fixed at 15.5 percent from July-December in 2013, the credit flow at that period was not that satisfactory due to the absence of proper infrastructure as well as business friendly environment caused by political uncertainty,” the apex trade body said in a statement on Thursday.

FBCCIIt said, “Besides, the expected credit flow to the private sector didn’t take place because of high interest rate and incoherent bank charges. All these have led to excessive liquidity in the banking sector.”

The FBCCI cautioned that if the money could not be invested soon, it will be channeled to non-productive sectors hamper the banking system.

The banks must give special emphasis on providing easy loans for productive sectors and set sector-wise loan assistance targets to ensure investment in productive sectors, observed the FBCCI.

It feels that it is necessary to consider the quality of projects for the loan assistance as well as strengthen the monitoring system.



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