Central bank unveils 5-yr strategic plan
May 31, 2010
The central bank Sunday announced its first five-year strategic plan aiming to add an impetus to the country’s economic development by brining in more people under the banking network.
“Financial inclusion is one of the key objectives of the strategic plan,” Bangladesh Bank (BB) Governor Atiur Rahman said while unveiling the plan document at a local hotel.
Financial inclusion means ensuring broader availability of financial services and credit to the financially bypassed sections of the society.
Around 70 per cent people of the country are still outside the coverage of the banking system, which has prompted the central bank as well as the policymakers to think about bringing these people under the banking network.
“We want to take the banking services at the doorstep of the people,” the central bank chief said, adding that the BB has already formed a strategic planning unit to oversee the implementation of the plan.
The BB governor asked the commercial banks and the non-banking financial institutions (NBFIs) for taking necessary measures identical to those of the central bank.
The plan for 2010-2014, which ushers a commitment for change, also focuses on some major areas like monetary policy framework, regulatory and supervisory framework, financial markets, currency management and payment system, foreign exchange reserve management debt management, human resource issues and internal controls.
A total of 17 action plans have been incorporated in the national document to address the development and changes of the central bank.
“To develop continually as a forward looking central bank with competent and committed professionals of high ethical standards, conducting monetary management and financial sector supervision to maintain price stability and financial system robustness, supporting rapid broad based inclusive economic growth, employment generation and poverty eradication in Bangladesh,” the plan said.
Under the plan, the central bank has committed to maintaining liquidity conditions and credit policies, ensuring adequate credit flows at market driven flexible interest rates for all productive economic activities.
“We shall foster macroeconomic stability through monetary and external sector management,” the central bank said in its plan.
The BB will provide precise prudential regulatory, risk management and disclosure framework to protect solvency and liquidity of individual institutions and stability of the overall financial system, acting as lender of last resort if and when needed.
“It is a live document,” the BB governor said, adding that the central bank would add some more things to the plan after reviewing the overall implementation trend.
The Insight and Ideas Limited, a local consulting firm, has provided technical supports to the preparation of the document.
Among others, Deputy Governor of the BB Murshid Kuli Khan, Executive Director Ahsan Ullah and Chief Executive of the Insight and Ideas Limited Jahangir Kabir also spoke on the occasion while chief executives and managing directors of the commercial banks attended.
The central bank of Bangladesh earlier discussed the plan with all commercial banks and financial institutions, the World Bank, the International Monetary Fund (IMF) and also with leading chambers and trade bodies.
Source: thefinancialexpress-bd.com
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