BB directs banks, NGOs to boost awareness on referendum

The directives were issued during a "Bankers’ Meeting" held at the central bank headquarters on Sunday. The meeting was presided over by Bangladesh Bank Governor Ahsan H. Mansur, with four deputy governors and managing directors of all private commercial banks in attendance.

According to meeting sources, the central bank has mandated that every bank branch across the country display at least two awareness banners regarding the referendum. This initiative aims to provide citizens with a clear understanding of the referendum's importance and objectives. The instruction follows a prior directive issued by the Chief Adviser’s Office.

The central bank also suggested that banks provide financial assistance from their Corporate Social Responsibility (CSR) funds to NGOs that undertake grassroots awareness programs. "If NGOs initiate field-level campaigns to educate the public about the referendum, banks can support them through CSR allocations to ensure a wider reach," a BB official stated.

Aside from the referendum, the meeting addressed several key financial indicators:

Default Loans: Non-performing loans (NPLs) in the banking sector fell to 30.34 percent at the end of December. Excluding five merged banks, the NPL rate stands at 24.53 percent.

Loan Restructuring: The Governor directed banks to overhaul micro and digital nano-loan programs to prevent them from falling into the hands of "risky" or "bad" borrowers.

School Banking: Each branch manager is now required to visit at least two schools annually to encourage students to open bank accounts.

Forex Reserves: The central bank noted that foreign exchange reserves are on an upward trend. Officials expect increased remittance inflows ahead of the upcoming Ramadan and Eid-ul-Adha festivals.

The meeting highlighted that the government is simplifying approval processes for foreign investors. Furthermore, reforms to the Foreign Exchange Regulation Act are currently underway.

Regarding interest rates, the central bank clarified that there is currently no scope to reduce rates as inflation has not yet reached the desired level. However, the central bank is working on strategies to bring interest rates to a tolerable level as soon as possible.

Masrur Arefin, Chairman of the Association of Bankers, Bangladesh (ABB), emphasized that banks are fully committed to making the referendum successful while maintaining the positive momentum in reserves and remittances, reports UNB.