Prime Minister’s Adviser on the Ministries of Finance and Planning Dr Rashed Al Mahmud Titumir has said the government is committed to ensuring operational autonomy for Bangladesh Bank (BB) while maintaining coordination between fiscal and monetary policies.
Speaking at a Focus Group Discussion titled “Synergising Banking Sector: Lenders’ and Borrowers’ Perspective” held at the Dhaka Chamber of Commerce and Industry (DCCI) conference room on Wednesday, he said the administration has adopted a non-interventionist approach toward the central bank.
He stressed that the government does not intend to interfere in the BB’s decision-making process, but rather aims to strengthen policy coordination to support macroeconomic stability.
Referring to past economic challenges, the adviser said previous irregularities and mismanagement had contributed to financial sector weaknesses, including credit rating downgrades by international agencies such as the IMF and others.
He added that the central bank is now focusing on recovery and reform initiatives, moving beyond conventional policy frameworks to prioritise economic growth and employment alongside price and financial stability.
Titumir also highlighted the need for targeted financial support mechanisms, including performance-based stimulus packages, to replace earlier incentive schemes that he said were sometimes misused or influenced by vested interests.
He noted that future credit support would focus more on productive sectors, while steps such as credit guarantee schemes and joint funding arrangements are being considered to assist businesses lacking sufficient collateral.
The DCCI president, in his presentation, pointed out structural imbalances in the banking sector, noting that despite high levels of liquidity, private sector credit growth has slowed significantly.
He said banks are increasingly holding excess funds due to risk concerns rather than channelling them into investment.
He also highlighted rising government borrowing from the banking system and called for reforms to improve credit allocation, reduce non-performing loans, and strengthen governance.
Business leaders and senior officials from banks and industry sectors also attended the discussion.
