‘Depositors’ money
FROM PAGE B1
During a session titled “Meet the leaders”, NBFI managing directors and CEOs discussed the sector and fielded questions from the audience.
Mominul Islam, managing director of IPDC Finance, said that there were some weak companies in the NBFI sector but the rest were financially sound, similar to the banking sector.
“We have ensured that the clients will get the best service from NBFIs,” he said, adding that customers should do their due diligence before parking money in the NBFIs.
“Your money will not disappear if you park it in leading NBFIs,” he assured depositors.
Kyser Hamid, managing director of Bangladesh Finance, said clients would have to check financial indicators before taking financial services and parking deposits at NBFIs.
He said banks and NBFIs were enduring a tough time given the challenges facing Bangladesh.
M Jamal Uddin, managing director of IDLC Finance, said that the NBFI sector’s role was no less important than the banking sector’s. He advised entrepreneurs to make their businesses sustainable.
The day-long event featured another session, titled “Bangladesh’s financial institutions’ possibilities and challenges”.
While making a presentation, BLFCA Chairman Md Golam Sarwar Bhuiyan said that the sector is facing various challenges, including growing NPLs, loss of reputation, liquidity crisis and a lack of good governance.
The presentation showed NPLs in the sector now stood at Tk 17,855 crore, which is very concerning.
Banks are very reluctant to provide new funds to NBFIs, which has led to a fund crisis in the sector. Slow deposit growth is another concern, illustrated the paper.
It recommended that sponsors and directors involved in loan irregularities have their shares in those companies confiscated to bring discipline to the sector.
The paper also urged to increase the number of independent directors and expand their activities at NBFIs, adding that the central bank’s inspection of NBFIs will have to be effective.
It recommended the formation of a financial sector reform committee for the betterment of the sector.
Bhuiyan also highlighted the role of NBFIs in the country’s businesses and economy.
Industries Minister Nurul Majid Mahmud Humayun inaugurated the event. He said that non-bank financial institutions should build trust among people since many had lost their money owing to irregularities.
Besides, the NBFIs will have to play a major role in creating new entrepreneurs, said the minister.
“We are in financial pressure. That is why the government is now taking austerity measures. Everyone should be aware so that ill-motivated businessmen cannot get loans.”
Khwaja Shahriar, MD of LankaBangla Finance, Nasimul Baten, MD of DBH Finance, Mohammad Shamsul Islam, MD of National Housing Finance, and others were present at the discussion.
Leading NBFIs participated at the fair organised as part of the event, showcasing their products and services to visitors.