Dhaka, Bangladesh (BBN)– Bangladesh Bank (BB) should proceed very cautiously in issuing any new bank licenses, visiting IMF mission chief David Cowen said in Dhaka on Wednesday.
“Bangladesh Bank should ensure that it has the resources it needs to properly supervise and regulate all the banks, including possible new banks on the list,” Mr. Cowen told reporters at a press meet at the central bank conference hall in the capital Dhaka before wrapping up his 10-day visit to Bangladesh.
Cowen, Deputy Divisional Chief for Asia and Pacific Department, IMF, also said the central bank should ensure that the liquidity conditions are supportive in allowing new entrances into the market.
IMF (International Monetary Fund) Resident Representative Eteri Kvintradze was also present at the meeting where Cowen made a presentation on macroeconomic outlook and the government’s reforms supported by the IMF’s ECF (Extended Credit Facility).
Mr Cowen said they don’t see any wrong in giving letters of intent (LoIs) to nine new banks as the central bank has maintained rules and requirements properly in this connection.
Mr Cowen said: “It (BB) has the resources it needs to properly supervise and regulate all the banks including new ones on the list.”
The IMF mission chief said the country’s GDP (gross domestic product) growth is expected to slow to 5.5 per cent, less than 1.5 per cent of the government target, in the current fiscal year.
He said the ECF arrangement, a concessional lending facility available to low-income member nations, is equivalent to special drawing rights (SDR) 639.96 million (around US$ 1.0 billion) – the largest ECF arrangement to date in SDRs.
BBN/SSR/AD-26Apr12-9:00 am (BST)