A round-table discussion has underlined the need for a roadmap to develop home loan market for low and middle income groups in the country through bringing reforms in the related policies.
The roundtable discussion was organised by IFC-World Bank Group as part of publication of a study at Le Meridian Hotel in the city on Thursday.
The session on 'Expanding the Low and Middle Income Housing Finance Market in Bangladesh' was participated by representatives from financial sector, regulators, departments of the government, research institutes and international donor agencies.
The stakeholders in the financial and housing sector strongly advocated for making public lands available to private sector developers for low and middle income housing through a PPP mechanism.
They also recommended developing a refinancing scheme to channel low-cost, long-term funds to the financial sector, according to an IFC-WBG press release.
Other reforms included reform of prudential regulations restricting banks and financial institutions in terms of housing exposure caps, loan to value ratios and provisioning and improvement of foreclosure process for mortgage defaults,
digitisation of land records, reduction of registration costs and simplification of approval process for housing development.
The IFC-World Bank Group's report was developed in partnership with the Dutch government and based on analysis of secondary data.
It highlighted that the demand for low and middle income housing finance in the country could grow to Tk 818.16 billion (US$ 10.4 billion at current exchange rates) by 2020.
The focus of the event was to present the findings and open up the floor to identify what reforms would be advocated by the participants to seize the market.
Ananya Wahid Kader, Senior Financial Sector Specialist at the World Bank Group, while presenting the study, said, "An efficient housing finance sector that allocates credit for expanding access to housing to under-served segments is imperative for Bangladesh's welfare."
Developing the low and middle income housing finance sector is an important feature of the World Bank Group's engagement with Bangladesh.
Dr. Friedemann Roy, Global Product Lead-Housing Finance at IFC called upon the government and regulators to come forward to create an enabling environment for expansion of low and middle income housing finance market.