Kamal unaware of FBCCI arrange for new bank

Finance Minister AHM Mustafa Kamal apparently does not have any idea about the Federation of Bangladesh Chambers of Commerce and Industry's (FBCCI) plans to create a commercial bank.

"I don't know concerning this. I have not received any such proposal," Kamal said yesterday. The country's apex trade body also really wants to establish a university to build up Bangladesh's workforce consistent with industry requirements.

The outgoing FBCCI board approved the proposals in a virtual meeting on Saturday.

However, Kamal maintains that no approached him about the proposed bank.

"There have been no discussions regarding this. When I will know, you then [journalists] will also be well informed," he said after a gathering of the cabinet committee on government purchase.

Experts criticised the proposal to set up a separate bank.

"The theory is absurd as the apex trade body did little for the cottage, micro, small and medium enterprise (CMSME) sector," said Ahsan H Mansur, executive director of Policy Research Institute of Bangladesh.


There are 61 banks and 34 non-banking finance institutions operating in the country.

As the apex trade body, the FBCCI includes a lot of responsibilities. This includes negotiating with the government to safeguard the interests of the neighborhood business community.

"But it can't ask to perform a separate bank. There is absolutely no such precedence of bank operations by any trade body on earth," Mansur added.

Fahmida Khatun, executive director of the Centre for Policy Dialogue, said you don't have for just about any new bank as the quantity of lenders is already too much given the country's business volume.

"Allowing a new bank won't bring worthwhile to the economy. Rather, we ought to focus on how to increase the financial health of existing lenders as only 10 to 15 of them are doing well," she added.

Salehuddin Ahmed, a former governor of Bangladesh Bank, said there is no genuine logic behind the FBCCI seeking a bank licence.

"If the directors of the FBCCI or other businesses face any problem in managing loans, they are able to urge the federal government and the central bank to reform the banking industry."

Siddiqur Rahman, senior vice-president of the FBCCI, said the board would go on and lobby the government to create the bank, a university and an insurance company.

A bank is needed to disburse loans to businessmen, especially to the CMSMEs, as the prevailing commercial banks are reluctant to lend to organizations without collateral.

"So, we try to provide collateral free loans for organizations in the sector," he added.