Dhaka, Bangladesh (BBN) – The central bank of Bangladesh has recommended reorganization and restructuring of publicly-owned entities, particularly in transportation and related infrastructure services, distribution of energy products and traditional industrial units.
“…Efforts are needed to address issues of reorganization and restructuring of publicly-owned entities extending beyond the financial sector particularly in transportation and related infrastructure services, distribution of energy products, and traditional industrial units,” the Bangladesh Bank (BB), the country’s central bank, said in its financial sector review, published on Wednesday.
The central bank policy analysis unit (PAU) has also stressed on minimization of risks in the financial sector through improving efficiency of the banks and financial institutions.
Efficiency, competition, cost effectiveness, good governance and corporate social responsibility will be the basis of ensuring efficient inclusion of the poor having no access to bank credit and minimizing risks in the financial sector, the central bank said.
The review recognized that there exists credit as well as liquidity risks in the financial market so that the priority in financial sector policies is to establish competitiveness in banking and non-banking sector with the ability to overcome maturity-mismatch and classified loan problems.
The central bank has taken several measures through implementing financial sector reforms and adopting new polices including restructuring of specialized banks, establishing a well functioning secondary securities market, and opening up of the financial sector to global level by ensuring proper financial regulation and supervision.
“As such, promoting healthy competition in the banking sector remains the corner stone of the country’s financial policy stance,” the review noted.