Dhaka, Bangladesh (BBN)– The International Monetary Fund (IMF) has emphasised enforcement of regulations properly to ensure stability of the financial sector in Bangladesh.
The Washington-based lender also recommended that the policymakers take effective measures to further improve the financial system if the country wants to reach the next stage of development.
The observations of an IMF visiting mission came at a concluding meeting held at the Bangladesh Bank (BB) headquarters on Wednesday with BB governor Fazle Kabir in the chair.
The eight-member IMF Financial Sector Stability Review (FSSR) Mission, led by Susan Mary George, for the first time assessed possible major vulnerability in the country’s financial sector since August 25.
The mission appreciated the existing regulatory framework that is of almost global standard, but they expressed concern over weak enforcement of rules and regulations, meeting sources said.
Most of the problems would be solved if the regulations are enforced properly by the authorities concerned, observed the team of the IMF.
The meeting discussed issues like the situation on non-performing loans (NPLs), effective monitoring of property prices, separation of commercial functions of state-owned commercial banks from development one and strengthening capital base of scheduled banks.
The IMF mission also offered technical support to BB for improving financial-sector stability through reforming rules and regulations.
The central bank of Bangladesh, however, is yet to make a decision on IMF’s technical assistance, according to BB officials.
During the visit, the mission met with policymakers, regulators, experts and stakeholders of scheduled banks and financial institutions as part of its assessment.