ZCZC
BSS-55
BLFCA-ECONOMY
BLFCA to work on liquidity crisis to sustain economy
DHAKA, July 14, 2020 (BSS) – Leaders of non-banks or non-bank financial institutions (NBFIs) said they would come forward to revive the country’s economy in the face of ongoing COVID-19 crisis by working on liquidity crisis, enhancing internal economic capacity and supporting bond market.
They made the remarks at the first online press conference with the newly appointed committee members of Bangladesh Leasing and Finance Companies Association (BLFCA) on Monday, said a press release today.
Highlighting the success of the financial institutions, BLFCA Chairman Mominul Islam, also managing director (MD) and CEO of IPDC Finance Limited, said “NBFIs have been contributing to the socio-economic development of the country for past few years. Currently 33 financial institutions with their 28 branches and 6,358 officers are serving 255,000 customers across the country. By now, we have provided 7.4 percent loans to banking sector, 13.3 percent to SMEs, 12.3 percent to
industries, 45.5 percent to depositors and 18.4 percent to general people.”
“The capital capacity of the institutions is 16.9 percent while the capacity of the banking sector is 11.6 percent. NBFIs are also 1% ahead of them in terms of growth,” he added.
BLFCA Executive Member Arif Khan, also MD and CEO of IDLC Finance
Limited, said, “Nobody wants to invest in private financial institutions due to a high rate of government treasury bills. In order to enhance the bond market, government has to pay more attention to mutual funds. If the bond market develops, the banking sector will also develop”.
While discussing the next two years plan, Golam Sarwar Bhuiyan, vice chairman of BLFCA and MD of IIDFC, said, “To take the NBFIs forward, we have organised various workshops for developing the skills of employees at the sector. Besides, we are in talks with banks and government to reduce the existing distance between us, to enhance the ICT-based development and the bond market.”
BLFCA Vice Chairman Abu Zafar Md Saleh, also MD and CEO of Islamic Finance and Investment Limited, said, “For the development of the country, it is necessary to allocate works and enact separate regulations for each sector. If every sector runs the same, the economic development will be severely hampered. Besides, the country’s non-bank or non-bank financial institutions are moving ahead in every area.”
BSS/PR/KUC/FI/2002 hrs