The leaders of the banking sector -Association of Bankers, Bangladesh (ABB) said banks were still facing the foreign exchange crisis to open LCs, and its ratio is 4 out of required 10 LCs.
Though the banking sector has slightly been stabling this year, it will take time to get back to the situation of 2018 or early 2019. A few banks have to make deferred payments so far, the ABB leaders said.
The ABB leaders made such comments at a news conference at the BRAC Bank head office complex in Tejgaon on Monday, to brief on updates on the banking sector.
ABB Chairman Selim RF Hussain, also managing director and chief executive officer (CEO) of BRAC Bank Limited, while Mashrur Arefin, vice-chairman and managing director and CEO of City Bank, also spoke, among others, at the press conference.
Selim RF Hussain said that the country’s banking sector has not seen an economic recession in 2022 due to the external effect, the pressure of macroeconomics, and the crisis of reserves was not seen in the last 35 years.
The country went into a severe recession in June-July last year. In this year, the value of domestic currency has fallen by 25%, which is unimaginable, he said.
The ABB Chairman said whether the interest rate should be based on the market or existing way is better should be looked into. The interest rates pegged at 6% and 9% helped the economic recovery, he said.
ABB Vice-Chairman Mashrur Arefin said that the banking sector is starting to overcome the economic recession caused by the Russia-Ukraine war and the COVID-19 pandemic.
As a result, deposits are increasing but loan disbursements are decreasing. Due to this, there is excess liquidity of Tk1.35 lakh crore than required by banks, he said.
He said that the people of the country still have trust in the banking sector. Because of this, now deposits are increasing, and remittances are also increasing.
Arefin said that the rate of dollars in remittance has increased from Tk 87 to Tk108.
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