Dhaka, Bangladesh (BBN) - Bangladesh Bank (BB) Governor Dr. Atiur Rahman is interested to do more for the people, particularly the poor trough strengthening the ongoing financial inclusion progarmmes in Bangladesh.
“We want to do more for the people, particularly the poor, in future through boosting our ongoing financial inclusion programmes across the country,” Dr. Rahman said on the eve of beginning of his seventh years as the BB Governor, according to a statement, issued by the central bank of Bangladesh on Sunday.
On his first working day, May 3 2009, the Governor expressed his commitment towards promoting pro-poor economic growth with a view to creating fresh employment opportunities through expansion of the industrial base across the country.
Dr. Rahman was appointed the 10th Governor of BB on May 1, 2009 for a four-year term, which was extended last year for another term.
Since assuming office as the central bank Governor, Dr. Rahman has been promoting inclusive economic growth through innovative and multi prolonged financial inclusion initiatives, channelling more credit towards socially and environment friendly business activities.
All these have been done within the safe limits of monetary expansion, supporting output growth and macroeconomic stability, aspired in the government's inclusive, sustainable development strategy.
"The approach has contributed notably in upholding domestic demand-led growth and stability amid prolonged post-global financial crisis slowdown in global output growth; with faster poverty decline sustained by employment and income in SMEs, stable downward edging inflation, and strengthening external sector viability," the central bank chef explained.
On the other hand, cautious but growth supportive monetary and financial policies of the central bank under the leadership of present Governor Dr. Rahman have helped achieve an annual average real gross domestic product (GDP) growth rate of more than six percent. In fact, the annual growth rate averaged at 6.2 percent over the last six years.
Moody’s Investors Service identifies Bangladesh’s growth volatility to be lower than almost all other countries which have been rated by the global credit rating agency. The US-based credit rating agency has rated Bangladesh’s outlook as stable for the sixth consecutive year.
This means that Bangladesh has been able to maintain a sustained economic growth despite global meltdown and domestic odds. The macroeconomic stability during the half a decade or so has indeed been unprecedented. BB’s pragmatic monetary and financial policies are also contributing towards maintaining lower inflation, competitive par value of Bangladesh Taka (BDT) and comfortable foreign exchange reserve position despite episodes of global economic recessions.
Foreign exchange (forex) reserves of Bangladesh Bank crossed the US$ 24 billion-mark for the first time on April 29 following steady growth of both export earnings and workers' remittance inflows.
The country will be able to settle nearly seven months of import bills with the existing forex reserves.
From the beginning, Governor Rahman has been ingraining socially responsible financing ethos in all banks and financial institutions aiming at establishing a humane banking sector in Bangladesh
All population segments of the society including farmers, small and women entrepreneurs are continuously encouraged to undertake productive endeavours through BB's broad based financial inclusion initiatives.
In order to combat the risks of climate change and environment pollution, conventional environment degrading production processes have been replaced by pollution free and environment friendly green financing practices, introduced by the central bank few years back.
Besides, refinancing, modernisation of the information and communications technology (ICT) and payments system, environmental risk evaluation guidelines, and other policy supports have been extended to facilitate inclusive and environment friendly financing.
With these reforms, the banks and financial institutions have involved in delivering mobile phone and smart card based financial services including e-commerce and cost saving financial services,” the central bank chief noted.
BB has already updated its loan classification and provisioning structure in line with the international standard to ensure good governance in the country’s banking sector.
“Loan classification and provisioning structure have been upgraded to the international standards. Risk management including strict internal audit and control has been enforced to ensure good governance through heightened supervision,” BB Governor explained.
He also said that modern IT based online dashboard is being used in the central bank and other banks in tandem.
Risk weighted capital adequacy, liquidity and leverage ratio of banks have been kept as par BASEL-II guidelines, creating avenues for smooth transition to BASEL-III guidelines which will come into effect in 2015,” Dr. Rahman added.
Regarding Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT), the BB governor said, modernising Bangladesh Financial Intelligence Unit (BFIU), information exchange/sharing related cooperation with international FIUs has been strengthened to combat money laundering, terror financing and illicit money transfer activities.
In this regard, customer due diligence and Know Your Customer (KYC) systems are kept in such a manner so that the lower income and lower risk clients including wage earner remitters are not deprived from inclusive financial services, he added.
During the tenure of current governor, opportunities for higher education and training in home and abroad have been extensively extended for all segments of the BB staff.
In addition to attain professional efficiency, proper attention has been given to improve leadership skills. These initiatives have instilled creative enthusiasm and work motivation among all BB staff.