‘Encourage innovative entrepreneurs’

Most of the banks and financial institutes are financing traditional products instead of financing new products based on agriculture which is pushing Non-performing loan up. Banks and Non-Bank Financial Intermediaries (NBFIs) may come out of the culture of providing loans to the conventional borrowers who are involved in producing traditional products of services, according to the BIBM study.

Experts opined on Wednesday it is high time encourage the innovative entrepreneurs in both rural and urban areas. Country’s entrepreneurs have already been involved in the business of producing and exporting non-conventional items, he added. Entrepreneurs now are involved in the farming of Crocodile, Crab, Turtles, Worms, Ostrich, Frog legs, Venom of Snakes etc. they said adding that the list of innovative product is quite long.

Experts made these remarks while speaking on the occasion of a paper unveiling seminar titled “Impact of Bank Based Rural and Urban Financing on Economic Growth of Bangladesh” organized by BIBM on Wednesday at its premises in Dhaka. Associate Professor of BIBM Mohammed Sohail Mustafa presented keynote paper in the seminar.

Other members of the research team are Tofayel Ahmed, Assistant Professor of BIBM and Reefat Zaman Shourov, Lecturer of BIBM. Deputy Governor of Bangladesh Bank SM Moniruzzaman said, “Distribution of credit to different private sectors has also significant impact upon the economic growth.”
He said that considering the growing demand for agricultural and rural credit, Bangladesh Bank in 2018, published ‘Agricultural and Rural Credit Policy and Program’.

It has been found from several studies that commercial banks’ lending activity helps to improve efficiency and rational distribution of resources between the various entities, he added. He further said that Gross Domestic Product (GDP) is related to the country’s economic activity. GDP is an indicator that reveals the country’s economic situation and its trends.

Executive Director of Bangladesh Bank and Director General of BIBM Md Nazimuddin chaired the Program. Output of the study along with opinions and observations made would help BB to take future actions, he added. Dr Muzaffer Ahmed Chair Professor of BIBM and Former Professor of Dhaka University Barkat-e-Khuda said, “We need to work together for getting expected results for our financial sector.”

“I hope the deliberation of this seminar will be very helpful for all concerned. I also expect that researchers will incorporate the suggestions and comments while finalizing the paper.” Helal Ahmed Chowdhury, Supernumerary Professor of BIBM and Former Managing Director of Pubali Bank Limited, Md Ali Hossain Prodhania, Managing Director of Bangladesh Krishi Bank and Dr Mahfuzul Hoque, Professor of Dhaka University also spoke among others at the event.