BMBA wants 1% provision against loan

To make country’s capital market dynamic, The Ministry of Finance, Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC) and other concerned regulatory bodies are working together. The aim is to establish Bangladesh’s name in the world as a country with a strong economy. This requires the necessary cooperation of all parties. As part of this, Bangladesh Merchant Bankers Association (BMBA) wants 1% provision on loans given in the capital market.

On September 5 This call has been made in a letter given to the Governor of Bangladesh Bank.The letter signed by BMBA President Chayedur Rahman and General Secretary Riyad Matin has been copied to the Secretary of the Financial Institutions Department of the Ministry of Finance and the Chairman of BSEC.

According to the letter, a circular issued by Bangladesh Bank’s BRPD on June 14, 2012 stated that banks would have to save 1 percent provision against loans. However, it will be 2 percent for merchant banks. The Bangladesh Merchant Bankers Association (BMBA) finds it difficult to implement in the current situation.

The president of the organization. Chhayedur Rahman told to Sunbd that the situation at that time is not the same as the current situation. At present the interest rate is 8 to 9 percent. It is very difficult to provide 2% of this. In the interest of improving the economy of the country and strengthening the capital market, I am requesting to fix it at 1 percent like ordinary debt.

Sunbd/NJ