Message

It is my privilege to extend warm greetings to the resilient Banking and Financial Institutions community of our country. Bangladesh achieved a strong rebound from the COVID-19 pandemic, though this post-pandemic recovery faced significant challenges in FY23, marked by rising inflation, financial sector vulnerabilities, external pressures, currency devaluation, and global economic uncertainties. Yet, the country has demonstrated notable resilience, with GDP growth anticipated between 5.4% and 6.5% in 2024. Our manufacturing and service sectors, with essential support from the banking and financial institutions, continue to uphold this resilience.

Today, I am delighted to celebrate the launch of the Banking Almanac: Banks and Financial Institutions of Bangladesh, a testament to our community’s enduring strength and contributions. From its modest beginnings in a fragile economy, Bangladesh’s financial sector has brought stability and steady progress, even amid numerous crises over the past half century of its independence.

However, our recovery journey from COVID-19 has been met with new and unforeseen challenges, including the repercussions of the Russian-Ukrainian conflict. These challenges have led to surging prices of essential goods, exchange rate pressures, foreign reserve shortages, and energy shocks. In the face of these obstacles, our banking and financial institutions, already recovering from past setbacks, are now contending with liquidity constraints and provisioning shortfalls.

In light of this year’s evolving circumstances, it is crucial for the financial industry to prioritize liquidity management, manage non-performing loans (NPLs), and exercise expense control. Under the prudent guidance of Bangladesh Bank, the industry must act swiftly and proactively to mitigate potential risks. Initiatives such as specialized refinancing schemes for key industries could be invaluable. Meanwhile, we must also capitalize on the momentum in digital transformation, a shift accelerated by COVID-19, to further our progress toward sustainable growth and resilience.

It is our shared responsibility to stand together as a unified community, navigating the global economic downturn and guiding our nation toward sustainable growth and long-term development.

Mr. Md. Golam Sarwar Bhuiyan
Chairman, BLFCA and Managing Director of IIDFC