Dhaka, Bangladesh (BBN)– Bangladesh is working to ensure poverty reduction through achieving inclusive economic growth, Bangladesh Bank (BB) Deputy Governor SK Sur Chowdhury said.
“Small and medium enterprises (SMEs) have an important role worldwide in achieving inclusive growth through ensuring job creation, enterprise building, industrialization and poverty reduction,”the deputy governor said while addressing as chief guest at a national seminar on ‘SME Finance and Inclusive Growth: Bangladesh Perspective’ held at the Bangladesh Institute of Bank Management (BIBM) in Dhaka on Thursday with Dr. Toufic Ahmed Chowdhury, Director General of the BIBM, in the chair.
Across the board in all jurisdictions SMEs are large in numbers and rapidly growing thus have significant capacity for generating employment, promoting inter-sectoral linkages, raising exports and developing entrepreneurial skills, Mr. Sur Chowdhury explained.
“Development of SMEs is envisaged as a key element of inclusive growth in Bangladesh like many other countries,” the deputy governor noted.
Enhanced micro, small and medium enterprise activities in the rural and backward regions constitute a key component of the strategy for rural development and poverty reduction, according to the deputy governor.
He also said the central bank of Bangladesh in collaboration with banks, financial institutions, other public and private sector institutions provides all out supports through creating provisions for cheaper finance to this sector.
“The BB believes by supporting MSMEs we are creating multiplier effect in poverty reduction and job creation which is key to achieve inclusive growth,” the deputy governor observed.
The central bank of Bangladesh has reserved 15.0 per cent of total SME financing fund for women entrepreneurs at a maximum annual interest of 10.0 per cent in an attempt to enhance more female participation in the productive sector.
Apart from these, the BB has been implementing different revolving refinance facilities for banks and non-banking financial institutions (NBFIs), he added.
Recently, the BB has constituted a refinance fund of BDT 1.0 billion for new cottage, micro and small enterprises, the deputy governor disclosed.
Professor and Director (RD&C) of the BIBM Dr. Prashanta Banerjee presented the research study at the seminar.
Among others, S A Chowdhury, AK Gangopadhya Chair Professor of the BIBM, Alauddin A Majid, Chairman of the BASIC Bank Limited, Sayed Mahbubur Rahman, Managing Director and Chief Executive Officer of the Dhaka Bank Limited and Mohammad Yunus, Senior Research Fellow of the BIDS, spoke on the occasion.