Message

I feel sincerely honored to address the Banking and Financial Institutions community of Bangladesh, one of the most persevering communities the country has known. As the COVID-19 crisis subsided, Bangladesh economy has marked a strong comeback against pandemic-laced headwinds with a GDP growth of 7.25% in FY 2022, fueled by expansion of manufacturing and services sector. Banks and Financial Institutions, led by the greatest minds of the country, played an equally vital role in reinforcing this phenomenal comeback.

I, therefore, am excited to welcome yet another successful launch of Banking Almanac: Banks and Financial Institution of Bangladesh that continues to strengthen and acknowledge our community and its contribution. Starting its journey in a frail economy, the financial industry of Bangladesh has given a steady hand in propelling sustainable growth, even amidst crisis of all kinds in its first half of century. The industry has reached a lending portfolio of BDT 12,77,750 crores in 2021 consisting of 61 banks and 35 Financial Institutions.

Just as our economy started emerging from the COVID-19 crisis, the untoward aftermath of Russian-Ukrainian war has hit back with food and non-food price escalation, exchange rate depreciation pressure, foreign exchange reserve shortfall and energy shock. The banks and financial institutions, still recovering from COVID-19 crisis, also found themselves amidst liquidity crisis and provision shortfalls.

Given the new realities of the ongoing year, liquidity management, NPL management and expense containment will become the areas of focus for the financial industry. The industry, under the prudent guidance of Bangladesh Bank, must take prompt actions to avert the impending crises. Special refinancing schemes targeted towards priority industries can be one of the advisable measures. But while we dwindle in this uncertainty, we must not lose sight of our journey ahead in the digitization spectrum that received a boost during the last couple of years largely owing to restrictions on physical meetings/interaction due to COVID-19. Unpacking the opportunities that digitization offers is essential to ensure sustainable growth and well-being.

It is the responsibility of our community to come forward as one team to pull through the global economy slump and gear towards sustainable growth and development.

Mominul Islam
Chairman, Bangladesh Leasing & Finance Companies Association
Managing Director & CEO, IPDC Finance Limited