Mahbubul Haque Chowdhury

THERE are about 100 banks and non-banking institutions already functioning in the country. Besides these, there are a number of non-government organisations (NGOs) which are also doing banking business in the name of microfinance. There are also co-operative banks, which got registration from the Joint Stock Companies under the Society Act. Notwithstanding the operations of all such banks and financial institutions, a large section of the population are still not covered by banking facilities.

There is an inherent tendency among the different groups of businessmen and traders to start a specialised bank to do exclusive business and for getting an easy access to fund for themselves. We have specialised banks like the Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangtha (BSRS), both of which will be merged soon under the new budget proposal, and the Agricultural Development Bank. But these banks could not thrive as expected. The process of merger of BSB and BSRS will lead to creation of a single unit to minimise operational expenditure and to make it profitable and viable. The agricultural development bank, later tuned into BKB, and started doing all commercial activities along with their farm loan business.

Trust bank which started under the Army management has now floated initial public offerings (IPOs) and is doing all businesses like private commercial banks. ANSAR and VDP Bank and Employment Bank are still giving specialised services for their respect clients. The specialised banks started with government initiatives and fund and render only certain services. They would become unviable if their functions are not diversified. Their beneficiary groups remain very limited and they cannot contribute widely to the macroeconomy and gross domestic product (GDP). There are women business federations that are also claiming a bank for women-led enterprises. The demand for establishment of bank for small and medium enterprises (SMEs) is also there:

The expatriates who are living abroad are demanding that they may have a bank of their own. At present, almost all the state-controlled banks (SCBs) and private commercial banks (PCBs) are doing the remittance business very quickly. Besides some money exchange houses and companies are also doing this job. In the event of opening of a separate bank for expatriates, the business of the above institutions will be curtailed. The financing of expatriates can easily be done by the present operating banks if the central bank and the government issue directives accordingly.

Expatriates should take the initiative to open a bank, if the capital for it could be arranged by them. The purpose of the bank would be to establish industries in the country. The expatriates should also be encouraged to take all initiatives to provide big finance to the viable infrastructure programmes of the country. There should not be a bank for remittance purpose only. The expatriate bank can provide loan to those who have got valid job permit. At present, travel agents are sending men at their risk. The people go to foreign countries with fake visas. The bank cannot provide any loan to this type of people. In that case, the bank will fall in real difficulties. The proposal for establishment of a bank for the expatriates should be considered in details. If should not be a political slogan. In should be realistic and really beneficial to all.

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The writer is a former General

Manger of Agrani Bank