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Good governance for disciplined financial market stressed


Published : 19 Oct 2019 06:39 PM | Updated : 28 Aug 2020 07:11 AM

Speakers at seminar stressed on good governance for ensuring disciplined in financial market. The sector is growing reapidly accompanied by the growing number of financial institutions. 

Despite remarkable improvement in the financial sector, some banks and financial institutions are facing crisis and navigating through difficult time.

They were speaking at a seminar on "Restructuring & Liquidation of Financial Institutions and Impact on Stakeholders" organised by Dhaka Chamber of Commerce & Industry (DCCI) at DCCI recently. 

Dr. Mashiur Rahman, Adviser to the Prime Minister on Economic Affairs was the chief guest. DCCI President Osama Taseer presided over the program. 

Dr. Mashiur Rahman, Adviser to the Prime Minister on Economic Affairs stressed on keeping confidence among the financial institutions. He also suggested the investors or depositors to invest or deposit their hard-earned money carefully. 

The Adviser recommended the financial institutions to conduct internal as well as external audit in a transparent manner on a regular basis. Regarding stock market he said that our capital market does not have good shares nor good companies and for that reason the investors have to depend on poor quantity of shares to trade. 

He requested large companies to float shares in the stock market and suggested to invest more in the manufacturing sector. He also urged upon for policy reformation, modernization and policy simplification for a strong financial market.   

DCCI President Osama Taseer in his welcome address said the Institutional weakness, weak governance, lack of stringent due diligence in loan disbursement, concentration to large borrowers and slow loan recovery process raised serious concern about the efficiency and soundness of many financial institutions. 

The high NPL impacts financial sector as well as for entire economy through slow credit recycling, pushing the liquidity shortage and impacting the creditworthiness of overall banking industry. Increasing deposit interest rate among all banks and NBFIs which in turn also increases the lending rate, impacting private sector credit flow from SMEs to large businesses, he said. 

Arif Khan, CEO and Managing Director of IDLC Finance Limited in his keynote paper urged to establish bond market and discourage banks for long term lending as he said banks take deposit for one year term and banks should not go for long term financing. In order to cut down non-performing loan he stressed for good governance, strong monitoring by the Central Bank, ensuring penalizing the wrong-doers. 

DCCI Vice President Imran Ahmed, Directors Engr. Akber Hakim, Ashraf Ahmed, Enamul Haque Patwary, KMN Manjurul Hoque, Engr. Md. Al Amin, Shams Mahmud and former President RM Khan were also present on the occasion.