Leasing, finance cos seek Tk 10,000 cr from govt

Bangladesh Leasing and Finance Companies Association (BLFCA) has sought Tk 10,000 crore to the government for reformation of the sector as well as strengthening the week institutes. BLFCA chairman Mominul Islam confirmed the matter following a meeting with the chief executives of non-bank financial institutions at the Bangladesh Bank's conference room in the capital on Tuesday.

“When we sought a fund to reform the poor financial institutions to the governor of Bangladesh Bank Fazle Kabir, he suggested us to submit a policy-setting proposal by next week as the central bank is also working to reform non-banking institutions of the country”, Mominul said.

He further said that Peoples Leasing Company has created disappointment among the investors while International Leasing Company is not in good condition. For such leasing and financial institutions BLFCA has demanded to allocate a fund of Tk 10,000 crore to the Central Bank.

It is to be noted, there has been a negative impact among the people as six financial institutions position is worst among the country's total 34 non-banking financial institutions. Claiming the situation of the financial sector is not that much dire, Mominul said, "We are looking forward if weaker financial institutions can be integrated with strong institutions. The fellow citizens will see big positive changes within the next one year.”

Asked whether the strong financial institutions are agreed to merge with the weak institutes he replied, “Week leasing and finance companies are creating barriers for strong companies. In this situation, strong companies are agreed to step forward taking week companies”. Informing that no decision has yet been taken, central bank’s spokesperson Shirajul Islam said, “To restore the people confidence in the financial sector, we are looking forward to taking new measures.”