News & Events

Roundtable Discussion on “Interest Rate and Expansion of Bank credit” held at BIBM

Written by Manager

Thursday 29th August 2019

Press Release
Dhaka, 27 August, 2019:
A half day long roundtable discussion was held at the Bangladesh Institute of Bank Management (BIBM) on 27 August, 2019, in its auditorium. Professor  Dr. Barkat-e-Khuda, Dr. Muzaffer Ahmed Chair Professor of BIBM & Former  Professor of Dhaka University Chaired the Program. Md. Nazimuddin, Executive Director of Bangladesh Bank and Director General of BIBM was present in the roundtable as the chief guest. Dr. Prashanta Kumar Banerjee, Professor  & Director (R, D&C and Admn.& Acct.) of BIBM delivered the welcome speech.
A paper titled “Interest Rate and Expansion of Bank credit” was presented in the Roundtable Discussion by  Md. Nehal Ahmed, Professor of BIBM. Other members of the team are Mohammed Sohail Mustafa, Associate Professor of BIBM; Rexona Yesmin, Assistant Professor of BIBM; Md. Abdul Kayum, Faculty Member of BIBM.
A good number of participants including senior bank executives, academicians, media representatives, faculty members of BIBM took part in the roundtable discussion. 
Professor Nehal Ahmed said, high interest rate increases the product cost which negatively affects the competitiveness of the export oriented firms. So the lending rate should be reduced to a reasonable level.  Adoption of modern technology in the banking operation will not only reduce the operating cost through increased efficiency but also enhance the customer satisfaction through quick delivery of services. 
According to BIBM study, whole situation is against the reduction of lending rate. Therefore, it is important for the bank management to ensure prudent borrower selection to promote bank credit quality and credit practices, which may eventually help to reduce the lending rate.
Director General of BIBM said, last several years, the Government, the Bangladesh Bank, the Commercial Banking sectors, and the business community have been debating in the issue of interest rate caps which includes both the deposit rate and lending rate.  For the betterment of an economy, it is believed that a country should prevail low interest rate which will ultimately stimulate the aggregate investment in the economy.  
He also said, to achieve the SDG, or Vision 2041, or Delta Plan, there is no other alternative but to implement a comfortable and affordable interest rate for the entrepreneurs to promote the entrepreneurial activities. 
Barkat-e-Khuda, BIBM Muzaffer Ahmed Chair Professor & Former  Professor of Dhaka University said, academicians may benefit from the findings of this study as it will add to the body of existing knowledge in finance. The results will establish how loan sizes relate with interest rates and therefore similar or related studied in the future could use this study as a reference material.

Dr. Prashanta Kumar Banerjee, Professor  & Director (R, D&C and Admn.& Acct.) of BIBM said, outcome of this study and valuable comments by the discussants will not only enrich the findings of the study, but will also give a direction to the regulator as well as the bankers in implementing the recommendations for the betterment of the banking sector of Bangladesh.

Members of the Institute

  • Bangladesh Bank
  • Sonali Bank Limited
  • Janata Bank Limited
  • Agrani Bank Limited
  • Rupali Bank Limited
  • Pubali Bank Limited
  • Uttara Bank Limited
  • Bangladesh Krishi Bank
  • Bangladesh Development Bank Limited
  • AB Bank Limited
  • National Bank Limited
  • Eastern Bank Limited
  • United Commercial Bank Limited
  • Islami Bank Bangladesh Limited
  • IFIC Bank Limited
  • Rajshahi Krishi Unnayan Bank
  • Standard Chartered Bank
  • Dutch-Bangla Bank Limited
  • Mercantile Bank Limited
  • ONE Bank Limited
  • Al-Arafah Islami Bank Limited
  • National Credit and Commerce Bank Limited
  • Trust Bank Limited
  • Southeast Bank Limited
  • Social Islami Bank Limited
  • The Hongkong and Shanghai Banking Corporation Limited
  • Standard Bank Limited
  • Export Import Bank of Bangladesh Limited
  • Mutual Trust Bank Limited
  • BASIC Bank Limited
  • Jamuna Bank Limited
  • Bank Asia Limited
  • First Security Islami Bank Limited
  • The City Bank Limited
  • Prime Bank Limited
  • Dhaka Bank Limited
  • Investment Corporation of Bangladesh
  • Bangladesh Commerce Bank Limited
  • BRAC Bank Limited
  • The Premier Bank Limited
  • Shahjalal Islami Bank Limited
  • State Bank of India
  • Habib Bank Limited
  • Commercial Bank of Ceylon PLC
  • Bank Alfalah Limited
  • Citibank, N.A.
  • National Bank of Pakistan
  • South Bangla Agriculture and Commerce  Bank Limited
  • Meghna Bank Limited
  • Woori Bank
  • NRB Commercial Bank Limited
  • Union Bank Limited
  • The Farmers Bank Limited
  • NRB Bank Limited
  • Shimanto Bank Limited
  • Bangladesh House Building Finance Corporation
  • Non Member NBFI