Economy must not be destroyed to protect weak banks: Ahsan H Mansur
Research organisation Policy Research Institute (PRI) executive director Ahsan H Mansur Has warned that the economy must not be destroyed to protect weak banks.
"The policy has to be maintained and we should not backtrack from it. Commercial banks, which themselves are responsible for the liquidity crisis, are being supplied money. Bangladesh Bank has to stop supplying money," the economist suggested.
He made the remarks at a discussion on proposed budget for 2024-25 jointly organised by Metropolitan Chamber of Commerce and Industry (MCCI) and PRI. Prime minister's economic affairs adviser Mashiur Rahman was present as the chief guest.
You are trying to reduce expenditure. Reduce government expenditure by Tk 500 billion more. Borrow Tk 900 billion from banks. Then the private sector will get Tk 800 to 900 billion. There will be a balance in it
The discussion was held at the MCCI office at the Police Plaza in Gulshan on Wednesday. MCCI chairman Kamran T Rahman gave the welcome speech. Among others, PRI chairman Zaedi Sattar, and Metro Chamber's tariff and taxation committee member Adib H Khan also spoke. Metro Chamber vice president N Karim moderated it.
Ahsan H Mansur said, "If bank deposit growth stands at 10 per cent, the amount will be Tk 1700 billion. If the government takes Tk 1350 billion, only 20 per cent of the deposit will remain for the private sector. The country cannot run in this way."
"You are trying to reduce expenditure. Reduce government expenditure by Tk 500 billion more. Borrow Tk 900 billion from banks. Then the private sector will get Tk 800 to 900 billion. There will be a balance in it," he noted.
About reforms in the banking sector, Ahsan H Mansur said, "There is nothing on reforms in the budget. Reforms in the banking sector remain pending for long. The government is unable to expand the banking sector. We cannot depend on foreign loans alone. So we have to pay attention to the banking sector."