BB governor urges banks to get involved in social activities

Bangladesh Bank governor Atiur Rahman on Tuesday urged the commercial banks to involve in social activities by encouraging the migrants workers to invest their remittances for productive use and sustainable economic development.

The central bank governor observed that the banks only received and delivered the remittances of the migrant workers for earning commission and did nothing to motivate them to invest their money for productive utilisation.

He was addressing a discussion meeting on 'Remittances for  Community Development : Exploring Alternative Schemes and Best Practices' jointly organised by Bangladesh Support Group, the Netherlands and Europe-based International Network of Alternative Financial Institution that links migrants remittances with microfinance institutions.

Atiur said the banks, local NGOs and other government agencies could play an active role in utilising NRB funds for social development activities in remote areas.

'It is observed that the bulk of remittances are used for consumption

of food, clothing and

agricultural land, home construction or repair and loan repayments with only little left for community development activities', he said.

'Perhaps NRBs find it difficult to locate appropriate channels for utilising their money for such community development initiatives,' he added.

He said there was no

crisis of liquidity but the crisis of trust. Investments would automatically

come if a conducive environment and trust could be ensured.

Atiur urged the non-resident Bangladeshis to invest in  such sectors like

power generation and renewable energy, software services, call cantres, basic legal documentation services, hotels and tourism in the country.

'NRBs know better the import demands and preferential tariff opportunities in their host countries. They can use this knowledge in profitable investment by setting up cost-effective labour intensive export manufacturing bases in Bangladesh and creating markets in the host countries and elsewhere', he said.

Triple L, Netherlands project coordinator Danielle De Winter, BASUG chairman Bikash Chowdhury Barua, INAFI Asia and Bangladesh

executive director Atiqun Nabi, NGO affairs bureau director general Muhammad Nurun Nabi Talukder and senior officials from banks, NGOs and government were present at the meeting.

Source: New Age