Excessive liquidity in banks indicates a sluggish cash flow and a torpid pace of development.
Government policymakers regularly apprise the public of extensive development work, but the hard fact remains that money idling in the bank is not just a sporadic problem. The keynote paper of Sunday’s annual banking conference stated that 2014 was not a good year for the free market.
Experts state, since the last term of Awami League government till now, investors haven’t been flocking to the banking sector. The lack of a business and industry-friendly environment has been a disincentive.
While the power supply problems have been addressed somewhat, power prices remain high.
Additionally, most of our industries rely on gas, but the gas crisis is gradually taking on critical proportions.
The major bottlenecks to investment have long been identified. There are no signs of any progress on having a special economic zone or a four-lane highway. There is hardly any scope to lay the blame on political agitation as, save a random strike now and then, there have hardly been any tangible opposition political programmes. But this has not led to any improvement in the investment scenario.
At the conference organized by the Bangladesh Institute of Bank Management, it was said that the banks were struggling for financial investment. If the government fails to create an environment conducive to investment, his struggle would be a long-term one.